Bangkok--2 May--Fitch Ratings Fitch Ratings has today affirmed Standard Chartered Bank (Thai) Public Company Limited’s (SCBT) Long-term foreign currency and local currency Issuer Default ratings (IDR) at ‘A-’ (A minus) with Stable Outlook, Short-term foreign currency and local currency ratings at ‘F2’, Individual Rating at ‘B/C’, Support rating at ‘1’, National Long-term rating at ‘AA+(tha) with Stable Outlook and National Short-term rating at ‘F1+(tha). SCBT forms an integral part of Standard Chartered Bank’s (SC) Asian banking network. SC’s stake is intended as a long-term strategic holding and it exercises effective control of the SCBT board and management. After 2009, with foreign ownership restrictions on further capital raising exercises in place, SCBT may have to depend on retained earnings, asset distribution and Tier 2 capital to mitigate dilution of SC’s shareholding level. Given SC’s reputation and resources, and its Long-Term foreign currency IDR of ‘A+’, Fitch Ratings believes there would be an extremely high probability of shareholder support, if required. SCBT reported income of THB1.7 billion at end-2007, down significantly from THB3.0bn at end-2006 due in part to stricter provisioning rules as well as a more conservative reserve against the bank’s consumer book. Nonetheless, SCBT’s underlying earnings remained stable. The outlook for 2008 remains challenging due to economic shocks from high oil prices and other inflationary pressures on the consumer, although the bank’s overall provisioning expenses should decline. SCBT’s impaired loans remain the lowest amongst Thai banks and about the same level compared to a year ago, at THB2.2bn or 2.8% of loans at end-2007. Meanwhile, SCBT’s loan loss reserve was strong at THB3.1bn, or 144.9% of impaired loans, at end-2007. Although the bank appears over-reserved, a large portion of its loan book is exposed to higher-risk and volatile unsecured consumer loans which in the current weak environment may see delinquencies rise. At end-2007, SCBT’s Tier 1 capital ratio and Total capital ratio stood at 13.8% and 14.2% of total risk-weighted assets, respectively. Capital ratios should remain strong due to the bank’s sustained profitability, notwithstanding the impact of any acquisitions. Basel II implementation at end-2008 will also see a moderate reduction in capital ratios due mainly to operating risk charges. SCBT was established in 1933 by the Wanglee family. The bank is now 99.83% owned by SC. SCBT currently ranks as the eight-largest commercial bank in the country, with a 1.5% share of loans, a 1.6% share of deposits and a network of 38 branches, mainly located in Bangkok and regional centres. 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: Darunee Peanmanakit, Vincent Milton, Bangkok, +662 655 4752/4759. 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.