Bangkok--11 Jun--Fitch Ratings Fitch Ratings has today affirmed Bangkok Bank Public Company Limited’s (BBL) Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB+’/Stable Outlook Short-term foreign currency Rating at ‘F2’, Individual Rating at ‘C’, Support Rating at ‘2’, National Long-term Rating at ‘AA(tha)’/Stable Outlook, National Short-term Rating at ‘F1+(tha)’, National subordinated debt rating at ‘AA-(tha)’ (AA minus(tha)) and its subordinated debt rating at ‘BBB’. The Bank’s Support Rating Floor is ‘BBB-’ (BBB minus). The ratings reflect the gradually improving profitability and asset quality of BBL as well as its solid capital and liquidity positions. BBL also benefits from an exposure to stronger regional economies, accounting for 17% of total loans. A further significant decline in impaired and restructured loans and a sustained improvement in profitability would be positive for the bank’s credit profile. Organisational and strategic improvements could also assist performance. In view of BBL’s size and systemic importance to the local financial sector and economy, the agency believes there is a high probability that the bank would receive state support, should the need arise. Net profit rose 7.2% to THB19.3 billion in 2007 from THB18.0bn in 2006, primarily as a result of lower provisioning costs. Its net interest margin remained stable at 3.1%. Loan growth grew by 8.3% in 2007, (5%, prior year). In Q108, BBL reported net income of THB5.7bn - an increase of 21.3% from THB4.7bn in Q107 mainly due to stronger loan growth, cheaper deposits, higher fee income and currency gains, as well as control over operating costs. Impaired loans continued to fall to THB82.1bn (or 7.9% of total loans) at end-2007, from THB89.3bn (or 9.3% of total loans) at end-2006 due mainly to writeoffs, debt restructuring and cash settlement. At end-March 2008, impaired loans remained flat at 7.9% and the bank expects to reduce this to about 5% by year-end, although the economic environment remains challenging. BBL’s LLR amounted to THB68.3bn, equal to 79.3% of impaired loans. At end-March 2008, BBL’s Tier 1 ratio stood at 11.4% and its Total capital ratio at 14.4% of risk-weighted assets. Capital ratios could be affected by 1%-2% by the implementation of Basel II at end-2008. BBL is the largest bank in Thailand, with about 20% market share. Contacts: Darunee Peanmanakit, Vincent Milton, Bangkok, Tel: +662 655 4752/4759