Bangkok--11 Jun--Fitch Ratings Fitch Ratings has today affirmed Thailand-based TMB Bank Public Company Limited’s (TMB) Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB-’ (BBB minus)/Stable Outlook, Short-term foreign currency at ‘F3’, National Long-term at ‘A+(tha)’/Stable Outlook, National Short-term at ‘F1(tha)’, Individual at ‘C/D’, Support at ‘3’ and Support Rating Floor at ‘BB’, its foreign currency subordinated debt at ‘BB+’, foreign currency hybrid Tier 1 securities at ‘BB-’ (BB minus) and subordinated debt at ‘A(tha)’. For Q108, TMB reported a net profit of THB1.6 billion up from THB220 million in Q107, mainly due to much lower charges following two years of large loan losses and other charges. Integration with ING Bank NV (ING, ‘AA’/‘F1+’) and the weak economic environment will constrain loan grow and performance, but it is likely the bank will return to profit in 2008. This should permit the renewal of coupon payments on its Hybrid Tier 1 in June 2008, following non-payment in December and June 2007. While NPLs remain high at THB74.2bn or 15.1% at end of Q108, the loan loss reserve (LLR) of THB48.9bn, or 65.8% coverage at end of Q108, is a significant improvement from the previous year. The higher reserve coverage should support the acceleration of NPL sales and resolutions of NPLs in the next two years. Total capital ratio and Tier 1 has been significantly strengthened with the THB37.7bn capital raising in December 2007 and now stands at 15% and 11.2% of risk-weighted assets, respectively. Hybrid Tier 1 accounts for 15% of Tier 1 capital. TMB is currently the sixth-largest commercial bank in Thailand with assets of THB621.9bn (USD18.4bn). ING is now the largest shareholder at 30%, followed by the Ministry of Finance at 26% and Singapore’s DBS Bank at 7%. ING is the second-largest retail bank in The Netherlands with total assets of USD1.5 trillion with regional retail operations in India and China. Contacts: Vincent Milton, Patchara Sarayudh, Bangkok, +662 655 4759/4761.