Bangkok--1 Feb--Fitch Ratings
Fitch Ratings (Thailand) has assigned a National Short-Term rating of 'F1+(tha) to Krung Thai Bank Public Company Limited's (KTB; National Long-Term Rating: 'AA+(tha)'/Outlook Stable) unsecured, unsubordinated short-term debenture programme of up to THB30bn with a maturity of no more than 270 days to be issued in several tranches within 12 months of filing of documents. The proceeds will be used for general banking purposes.
KTB's ratings are primarily based on government ownership, control and support. KTB is Thailand's second-largest bank with about 17% market share in assets as of end-December 2011. Its major shareholder, with a 55% stake, is Financial Institutions Development Fund, a unit under the Bank of Thailand. Notwithstanding the current ownership stake, Fitch believes there is a high probability that KTB would receive state support if needed, due to its size and importance to the financial system and economy.