Fitch affirms Bank of China's rating at 'AAA(tha)'

BANGKOK: Fitch Ratings (Thailand) has affirmed the National Long-Term Rating of Bank of China (Thai) Public Company Limited (BOCT) at 'AAA(tha)' with a Stable Outlook, and the National Short-Term Rating at ' F1+(tha)'.

BOCT's National Ratings are based on institutional support from its parent, Bank of China (Hong Kong) Limited (BOCHK; A/Stable/a). Fitch believes that there is an extremely high probability that BOCT would receive extraordinary support from its parent, if needed. Fitch considers BOCT as a strategically important subsidiary of BOCHK. BOCT has a small market presence, but supports the parent's franchise in south-east Asia; for example, it services Chinese clients with business interests in Thailand, the region's second-largest economy. Furthermore, there is full ownership by BOCHK, brandand name-sharing, close integration, and ongoing operational and financial support from BOCHK to BOCT.

Fitch may downgrade BOCT's ratings if BOCHK's ability to support its subsidiary declines, as may be indicated by a downgrade in its Long-Term Foreign Currency Issuer Default Rating, although Fitch would also assess the relative strength of BOCT's supportdriven rating relative to other entities on the Thai National Rating scale.

BOCT's ratings could also be downgraded if Fitch sees a material decline in the parent's propensity to provide extraordinary support to BOCT; for example, a reduction of BOCHK's ownership to below 75%, with weakening control over the management of BOCT as well signs of a weakening financial commitment. However, Fitch does not expect any change in support propensity over the near to medium term.

Fitch's approach to ratings endorsement so that ratings produced outside the EU may be used by regulated entities within the EU for regulatory purposes, pursuant to the terms of the EU Regulation with respect to credit rating agencies, can be found on the EU Regulatory Disclosures page.

The endorsement status of all International ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for all structured finance transactions on the Fitch website. These disclosures are updated on a daily basis.