Bangkok--21 Dec--Fitch Ratings Fitch Ratings-Bangkok/Hong Kong/Singapore-21 December 2007: Fitch Ratings has today affirmed the ratings of Export-Import Bank of Thailand (EXIM), as follows: - Long-term foreign currency Issuer Default Rating (IDR) at 'BBB+'/ Outlook Stable - Short-term foreign currency IDR at 'F2' - National Long-term rating at 'AAA(tha)'/ Outlook Stable - National Short-term rating at 'F1+(tha) - Support rating at '2' - Support Rating Floor at 'BBB+' - Outstanding senior unsecured bonds at 'AAA(tha)' EXIM's ratings are linked to the sovereign ratings as the bank is fully-owned and controlled by Thailand's Ministry of Finance (MOF). Also, the performance of some of its operations is protected by the MOF through loss compensation provisions. Under the EXIM Act, if the bank suffers losses as a result of undertaking business in accordance with its mandated policy role, or from export credit insurance and investment insurance, the MOF is required to compensate EXIM for these losses. Notwithstanding the limits on the guarantee, given the full ownership and control of the bank by the MOF as well as EXIM's development policy role, Fitch believes that there is a high probability that state support would be forthcoming, if necessary. EXIM plays a key role in providing export insurance, investment insurance and financing to Thai exporters and Thai investors overseas. While its main business will remain on the export sector, the bank plans to increase its lending to domestic national development projects in energy, utilities and infrastructure sectors. In 2006, EXIM reported a net loss of THB1.3 billion (versus THB457 million net income in 2005), due mainly to higher provisioning in compliance with the International Accounting Standard No. 39. The bank's pre-provisioning profit was THB1.5bn in 2006, almost unchanged year on year. In H107, EXIM reported a net income of THB225m, up from THB142m in H106, largely due to higher net interest and non-interest income as well as a reversal of loss on debt restructuring. Its pre-provisioning profit increased marginally to THB755m in H107. EXIM's loan portfolio also declined during 2006 and H107, resulting from a more cautious lending policy given weak economic prospects and intensified competition.