Bangkok--29 Aug--Fitch Ratings Fitch Ratings (Thailand) has today affirmed Kim Eng Securities (Thailand) Public Company Limited’s (Kim Eng) National Long-term rating at ‘A(tha)’ with Stable Outlook and its National Short-term at ‘F1(tha)’. Kim Eng’s ratings reflect its strong local retail franchise, which benefits from support of its strong foreign parent (Kim Eng Holdings Limited of Singapore), as well as its solid capital and liquidity positions. The planned liberalisation of brokerage commissions in 2010 is likely to add pressure on the firm’s profitability. To help offset this, Kim Eng intends to increase revenues from investment banking and private fund management, margin loans and derivative warrants. Kim Eng’s net income improved to THB341m in H108 from THB167m in H107, due mainly to an increase in trading volume and increase in its market share. Market risk appears moderate, with proprietary trading very small. Kim Eng has primarily funded its operations from capital, with strong equity to assets ratio of 63.4% at end-June 2008. While market conditions remain weak, the Outlook for Kim Eng is Stable given its strong capital and liquidity positions. Downside risks could stem from worse-than-expected capital market conditions or a substantial diversification into higher risk businesses. 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.