Bangkok--6 Dec--Fitch Ratings Fitch has today affirmed the following ratings of Thailand's Siam City Bank (SCIB): Long-term foreign currency Issuer Default rating (IDR) at 'BB', Short-term foreign currency rating at 'B', National Long-term rating at 'A-(tha)' (A minus(tha)), National Short-term rating at 'F1(tha)', Individual rating at 'D', Support rating at '4' and Support Rating Floor at 'B+'. The Outlook on the ratings is Stable. The ratings of SCIB are affirmed, notwithstanding further asset quality deterioration over the past year. In 9M07, SCIB reported a moderate net loss of THB3.4 billion, affected by a large loan loss provision of THB6.8bn. Due in part to stricter classification, as well as underlying deterioration in its portfolio, SCIB's impaired loans rose significantly to THB21.0bn or 8.6% of total loans at end-September 2007 (end-2006: THB13.0bn or 5.6%). SCIB's loan loss reserve coverage is in line with its peer group, at over 70% of impaired loans. Future asset quality trends depend on an expected rebound in the Thai economy in 2008, as well as improved standards in credit origination and collections. At any rate, the bank's capital position still appears strong, with a Tier 1 capital ratio of 13.2% of risk-weighted assets at end-September 2007. The Outlook on the ratings is Stable given SCIB's relatively strong capital base which provides the bank some buffer in withstanding the weak operating environment. A clearer longer term strategy and shareholding structure, as well as the strengthening of the bank's franchise, risk controls and management could improve the ratings in the medium term. Fitch also believes that there is a limited probability of state support for SCIB in the longer term, notwithstanding current government ownership. SCIB was nationalised following the country's 1997 financial crisis, and in 2002, merged with another nationalised bank, Bangkok Metropolitan Bank. The central bank's Financial Institutions Development Fund (FIDF) still retains a 48% stake, although this is expected to be divested. The bank has nearly 7000 employees and over 400 branches with a 6% market share, as well as affiliates in insurance, securities, asset management and leasing. Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(tha)' for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. Contacts: Vincent Milton, Bangkok, +662 655 4755; David Marshall, Hong Kong, +852 2263 9963. Media Relations: Shivani Sundralingam, Singapore, Tel: + 65 6796 7215. Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. 101 Finsbury Pavement, London, EC2A 1RS