Bangkok--25 Jun--Fitch Ratings Fitch Ratings placed BankThai Public Company Limited’s (BT) Support rating of ‘4’ on Rating Watch Evolving (RWE) on 10 June 2008, pending the completion of a planned further capital raising and possible dilution of the Financial Institutions Development Fund’s (FIDF) 42% stake over the next few months. Fitch has assigned only a Support rating to BT. On June 20 2008, BT announced that the FIDF entered into a sales agreement with Malaysia’s CIMB Group Sdn Bhd (CIMB) to divest its 42% stake for approximately THB5.9 billion. The sale is subject to the approval of Thailand’s Ministry of Finance (MOF) and the payment of proceeds from the recent sale of NPLs to two state-owned entities. If approved by the MOF and the sale to CIMB is completed, Fitch will likely affirm the Support rating at ‘4’, and could upgrade the rating, if CIMB acquires a majority stake through a subsequent required tender offer. In the event the sale is not completed, the Support rating will likely remain on RWE pending clarification of state support for a further recapitalisation which is needed to restore the bank's financial strength. Fitch believes the support of CIMB as the major shareholder has the potential to significantly transform BT's franchise and strengthen its financial position and performance which is currently very weak. CIMB is Malaysia’s second-largest financial services group with assets of over USD57bn. CIMB holds 100% of CIMB Bank Bhd (‘BBB+’/Positive Outlook), which is its main operating subsidiary. The ultimate holding company of CIMB is listed Bumiputra-Commerce Holdings Bhd (BCHB). Malaysian government entities, including Khazanah which is the government’s investment arm, hold a combined 36% stake in BCHB. CIMB has expanded regionally in recent years, with a 62% stake in Indonesia’s PT Bank Niaga and a 20% stake in China’s Bank of Yingkou. Contacts: Vincent Milton, Bangkok, +662 655 4759; Darunee Peanmanakit, Bangkok +662 655 4752. 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.