OREANDA-NEWS. Fitch Ratings has affirmed the National Long-Term Ratings on five Thai subsidiaries of North Asian financial institutions.

The following have been affirmed at 'AAA(tha)' with Stable Outlook:

- Bank of China (Thai) Public Company Limited (BOCT),

- Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT), and

- ICBC (Thai) Leasing Company Limited (ICBCTL).

Easy Buy Public Company Limited (EB) has been affirmed at 'AA+(tha)' with Negative Outlook. The Negative Outlook for EB is consistent with the Negative Outlook of its parent ACOM Co., Ltd. (ACOM; A-/Negative).

Capital Nomura Securities Public Company Limited (CNS) has been affirmed at 'AA-(tha)' with Stable Outlook.

A full list of rating actions is included at the end of this commentary.

KEY RATING DRIVERS

NATIONAL RATINGS AND SENIOR DEBT

The National Ratings of BOCT, ICBCT, EB and CNS are driven by Fitch's view that these are strategically important subsidiaries of their respective parents - namely Bank of China Ltd. (BOC; A/Stable), Industrial and Commercial Bank of China Limited (ICBC; A/Stable), ACOM, and Nomura Holdings, Inc. (NH; A-/Negative, Viability Rating: bbb). This is because the parents have large stakes in and control over the subsidiaries, and there is name - and brand-sharing, management integration and histories of support. Fitch believes that there is a high probability of extraordinary support for the subsidiaries if required.

Moreover, the agency expects the change in BOCT's immediate parent from BOC to Bank of China (Hong Kong) Limited (BOCHK; A/Stable) - a direct subsidiary of BOC - to have limited impact on the propensity or the ability of the group to support BOCT. The shareholding change is pending regulatory approval from Thai and Hong Kong authorities. For further details on the shareholding transfer, refer to the non-rating action commentary "Fitch: Bank of China's Sale of Thai Subsidiary Won't Have Rating Impact" dated 6 July 2016 and available at www. fitchratings. com.

CNS's rating is driven by the Viability Rating of NH as Fitch does not factor in Japanese sovereign support flowing through to this subsidiary. Hence CNS's rating is sensitive to changes in the parent's Viability Rating and not the Issuer Default Rating.

The National Ratings of ICBCTL are equalised with those of ICBCT to reflect Fitch's view that it is a core subsidiary of the bank. ICBCTL forms a key part of the bank's strategy, accounting for 31% of ICBCT's consolidated loans at end-June 2016 and 31% of its consolidated revenues in 1H16.

The senior debt ratings for ICBCTL (Long-Term and Short-Term), EB and CNS are consistent with the National Ratings at these entities, in accordance with Fitch's criteria.

GUARANTEED BONDS

The ratings on ICBCTL's bonds guaranteed by ICBCT are based entirely on an unconditional and irrevocable guarantee provided by the parent.

ICBCTL's guaranteed bonds are rated at the same level as ICBCT's National Long-Term Rating.

The Stable Outlook of the guaranteed bonds is consistent with the guarantor's Outlook.

RATING SENSITIVITIES

NATIONAL RATINGS AND SENIOR DEBT

The National Ratings at BOCT, ICBCT, and ICBCTL are already at the top end of the scale and no upside is possible. However, the ratings on these subsidiaries could be downgraded if the ratings of their respective parents are downgraded.

The changes in the ratings or credit profile at the respective parents of EB and CNS could similarly affect the National Ratings.

Any material changes in Fitch's view on the parents' propensity to provide extraordinary support to their respective subsidiaries could result in a change in the National Ratings. For example, a significant reduction in ownership or level of commitment to provide financial support could indicate a material weakening in propensity to provide support, which will have a negative impact on the ratings. However, Fitch does not view this as likely in the near term.

GUARANTEED BONDS

The ratings of ICBCTL's guaranteed bonds are the highest on the national scale; therefore there is no potential rating upside. ICBCTL's guaranteed bonds could be affected by any negative rating action on ICBCT.

The rating actions are as follows:

BOCT:

- National Long-Term Rating affirmed at 'AAA(tha)'; Outlook Stable

- National Short-Term Rating affirmed at 'F1+(tha)'

ICBCT:

- National Long-Term Rating affirmed at 'AAA(tha)'; Outlook Stable

- National Short-Term Rating affirmed at 'F1+(tha)'

ICBCTL:

- National Long-Term Rating affirmed at 'AAA(tha)'; Outlook Stable

- National Short-Term Rating affirmed at 'F1+(tha)'

- National Long-Term Rating on bonds guaranteed by ICBCT affirmed at 'AAA(tha)' ; Outlook Stable

- National Long-Term Rating on senior unsecured bonds affirmed at 'AAA(tha)'

- National Short-Term Rating on unsecured unsubordinated debenture programme affirmed at 'F1+(tha)'

EB:

- National Long-Term Rating affirmed at 'AA+(tha)'; Outlook Negative

- National Short-Term Rating affirmed at 'F1+(tha)'

- National Long-Term Rating of senior unsecured bonds affirmed at 'AA+(tha)'

CNS:

- National Long-Term Rating affirmed at 'AA-(tha)'; Outlook Stable

- National Short-Term Rating affirmed at 'F1+(tha)'

- National Short-Term Rating on unsecured unsubordinated debenture programme affirmed at 'F1+(tha)'