S&P Upgrades TMB’s Rating to BBB, Supporting by a Robust Capital Base of 18.6%

S&P Upgrades TMB's Rating to BBB, Supporting by a Robust Capital Base of 18.6%

S&P Global Rating has upgraded TMB Bank Public Company Limited (TMB)’s rating outlook from BBB- to BBB as the merger with Thanachart Bank Public Company Limited (TBANK) has proceeded as planned. Analyst has a positive view on TMB due to a robust capital base of 18.6%, giving a target price at ฿1.30/share.


Analyst of Capital Nomura Securities stated that the upgrade of credit rating from BBB- to BBB on TMB has provided a positive sentiment to the bank, indicating a solid business after the merger with TBANK completed. 


Asia Wealth Securities saw the TMB and TBANK merger will strengthen the bank’s capital base. TMB’s Capital Adequacy Ratio (CAR) is at a level, which is well above other banks, of 18.6%, leading S&P to revise a credit rating. 


DBS Vickers Securities maintained its “BUY” recommendation on TMB and revised a target price to ฿1.30/share (0.6x FY21E), roll forward the valuation to 2021E base.    


S&P Global Rating upgraded the credit rating on TMB mainly due to the merger between TMB and TBANK will affect the banking sector to have systemic importance, doubled with the integration went along as planned and is expected to be completed by July 2021.