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December 17, 2007 |
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TMB BANK: May Not Pay Interest to Hybrid Debt Holders, BoT Says TMB Bank PCL may not be able to pay interest to the holders of its US$200 million hybrid debt instruments because of recurring losses, the Bank of Thailand told the Bangkok Post. According to BoT governor Dr. Tarisa Watanagase, TMB is unlikely to be in a position to pay interest to its bondholders in the second half despite the recent capital increase and ING Bank's acquisition of a 30% stake in the bank, the report relates. The bank, the article says, reported a loss of THB2.5 billion for the third quarter of this year. The bank had earlier been prohibited from making interest payments in July because of recurring losses and indicated that fourth-quarter results would show losses due because of a THB25- billion provision for loan losses, the Post relates. 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 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 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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