...Sovereign Support Drives Ratings: Krung Thai Bank Public Company Limited's (KTB) Support Rating Floor drives its Issuer Default Ratings (IDR) and National Ratings. Fitch Ratings expects a high probability of extraordinary support from the Thai government during severe financial stress. Continued Government Ties: KTB's Support Rating Floor reflects its continued importance to the financial system and government. KTB is one of Thailand's five domestic systemically important banks (D-SIBs). Fitch rates KTB's Support Rating Floor one notch higher than the other D-SIBs due to its closer state linkages; KTB is the only commercial bank in which the government holds a majority stake. The bank is also the government's main payment provider and periodically undertakes government initiatives. Risk Appetite Constrains Profile: Concentration risk and an above-average risk appetite have undermined KTB's asset quality and are likely to weigh on its standalone credit profile, as captured in its Viability...
