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November 26, 2007 |
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TMB BANK: Central Bank OKs ING's Purchase of 30% Shareholding The Bank of Thailand has approved ING Bank's transaction to purchase 30% of TMB Bank PCL in order to improve the ailing Thai bank, The Nation reports. According to BoT's assistant governor, Sorasit Soontornkes, the Council of State approved the purchase based on its interpretation of the Commercial Bank Act, which states that foreign investors can hold more than 25% of a bank only if it is intended to improve the bank. Mr. Sorasit said that although TMB is performing solidly with higher-than-required capital, it is in doubt over the next few years. "The point to consider is future performance. We forecast the bank might suffer problems in next one or two years," Mr. Sorasit explained. Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd -- http://www.tmbbank.com/ -- is a commercial bank that renders financial services to all groups of customers. TMB Bank had total assets of about THB717 billion as at December 31, 2005. On July 6, 2007, Standard & Poor's Ratings Services gave TMB Bank's US$200-million hybrid Tier 1 securities a 'BB' rating. On October 11, 2007, the Troubled Company Reporter-Asia Pacific said that Standard & Poor's Ratings Service said that it has lowered its long-term counterparty credit rating on Thailand's TMB Bank Public Co. Ltd. to 'BB+' from 'BBB-' and the short-term rating to 'B' from 'A-3'. The rating has been removed from CreditWatch, where it was placed with negative implications on July 6, 2007. The outlook is negative. On October 30, 2007, Fitch Ratings has placed TMB Bank Public Company Limited's Long-term foreign currency Issuer Default Rating of 'BB+', Short-term foreign currency IDR of 'B', foreign currency subordinated debt rating of 'BB', foreign currency hybrid Tier 1 rating of 'B', Individual 'D', Support '3', Support Rating Floor of 'BB', national Long-term 'A(tha)', national Short-term 'F1(tha)', national subordinated debt 'A- (tha)' (A minus (tha)) rating on Rating Watch Evolving. |
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