Fitch: United Overseas Bank (Thai) notes AA+(tha)

Fitch Ratings said it assigned a national long-term rating of AA+(tha) to United Overseas Bank (Thai) PCL's upcoming issue of Thai baht-denominated Basel III-compliant tier 2 subordinated unsecured notes.

The notes are rated one notch below the bank's national long-term rating to reflect their subordinated status, Fitch said.

In line with other instruments of this type issued domestically in Thailand, the notes include a non-viability trigger for loss absorption, the agency said.

The notes have no going-concern loss absorption features, Fitch said, and there is no additional notching for non-performance risk.

The company's national long-term rating is driven by a view that the bank is a strategically important subsidiary of United Overseas Bank Ltd., the agency said.

Any change in the national ratings of the bank would have a similar impact on the rating of the notes, Fitch added.

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