Capital Intelligence, the international emerging markets rating agency, today announced that the financial strength rating for Siam Commercial Bank (SCB) had been raised to BBB-. Other ratings remain unchanged.
The new ratings are as follows:
Foreign Currency: L/T: BBB- S/T: A3 Financial Strength: BBB- Support: 2 Outlook: StableSCB is now reaping the benefits of the decision to add massively to loan-loss provisions in 2002. Although this meant a very large loss for that year, this firm action in relation to asset quality has helped the bank to post much stronger earnings performances in 2003 and H1 2004 as there is now little need for additional specific provisions to be taken. Although non-performing loans (NPLs) remain higher than desirable, provision coverage is strong by the standards of the Thai banking sector. More importantly, SCB is making steady progress in working down both NPLs and foreclosed properties. Capital adequacy is comfortable and liquidity is satisfactory in what continues to be a very liquid market.
-Ends-
Contact:
Rory Keelan
rory.keelan@ciratings.com.cy
Tel: 00 357 2534 2300
Darren Stubing
darren.stubing@ciratings.com.cy
© Press Release 2004
