...Sovereign Support Drives Ratings: Krung Thai Bank Public Company Limited's (KTB) Support Rating Floor (SRF) underpins its Issuer Default Ratings (IDRs) and National Ratings. The SRF in turn reflects a high probability of extraordinary support from the Thai government should the need arise. KTB's SRF reflects the bank's dual importance to the financial system and the Thai government. The central bank named KTB, one of Thailand's largest commercial banks, one of five domestic systemically important banks (D-SIBs). The state holds a 55% stake in KTB, while the bank's operations and reputation are closely linked with the Ministry of Finance (MoF). We rate KTB's SRF one notch higher than the other D-SIBs due to these linkages. Stable and Diversified Funding: KTB's funding and liquidity are likely to remain stable in the medium term. The bank's funding stability stems from its strong relationships with state-owned enterprises (SOEs) and its diversified funding structure. Fitch Ratings upgraded...
