Bangkok--14 Oct--Fitch Ratings Fitch Ratings has today revised the Outlook on Muang Thai Life Assurance Company Limited (MTL) to Stable from Positive. At the same time, the agency has affirmed the company’s Insurer Financial Strength (IFS) rating at ‘BBB+’ and its National IFS rating at ‘AA(tha)’. The Outlook revision reflects the uncertainty associated with Fortis Insurance International N.V.’s (Fortis) minority ownership in MTL, following the negative rating action on the Fortis Group (please refer to Fitch press releases - “Fitch Downgrades Fortis's Ratings of RAC” dated 29 September 2008, and “Fitch Revises Rating Watch on Fortis Insurance Units and Holdings Companies” dated 6 October 2008), as well as increased volatility in the broader operating and business environment. The agency expects that the financial difficulties faced by the Fortis Group are unlikely to materially affect the MTL’s operations, given the latter’s sound standalone fundamentals. However, the overall operating and business environment in Thailand going forward is likely to be less benign than in the past. While synergies with Fortis could decline, MTL is expected to maintain strong synergies and support from the Kasikornbank group. MTL has a strong business profile in the Thai market, prudent capital levels compared with its regional and local peers, an effective multi-distribution channel strategy and solid track record of financial performance. Kasikornbank Public Company Limited (Issuer Default Rating (IDR):‘BBB+’/National Long Term Rating: ‘AA(tha)’/Outlook Stable), which holds an economic interest of 7.5% in MTL, remains committed to supporting MTL’s new business growth through bancassurance. Fitch views capitalisation as MTL’s significant standalone strength. The company’s capitalisation is significantly above the local regulatory requirements, and internally benchmarked against European regulatory standards. Its local regulatory solvency margin position is currently at more than 700% in FY07, which is materially higher than the local statutory minimum level of 100%. Established in 1951, MTL ranks as the third-largest insurer in Thailand with a 8.1% market share in total premiums. Fortis holds a 24.99% direct ownership in MTL, and a further economic interest of 15% is held through its stake in Muang Thai Fortis Holding Company Limited (MTFH). Fortis is in turn 100%-owned by Fortis Insurance N.V. (IDR:‘BBB’/Negative Watch). The Lamsam family and Kasikornbank group hold an economic interest of 56.28% in MTL via its stake in MTFH. Contacts: Darunee Peanmanakit, Bangkok +662 655 4752; Wan Siew Wai, Singapore, +65 6796 7217; Jeffrey Liew, Hong Kong +852 2263 9939; Vincent Milton, Bangkok, +662 655 4759. Disclosure: Muang Thai Life Assurance Company Limited owns 10% of the shares in Fitch Ratings (Thailand) Limited. No shareholder, other than Fitch Rating Limited of the UK, is involved in the day-to-day operation of, or credit rating reviews undertaken by, Fitch Ratings (Thailand) Limited. Note: National IFS Ratings provide an assessment of relative financial strength to the insurance company’s policyholder obligations. National IFS Ratings assess the ability of an insurer to meet policyholder and related obligations, relative to the best credit risk in a given country across all industries and obligation types. National IFS 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 IFS ratings in Thailand. Specific letter grades are not therefore internationally comparable. 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.