Krung Thai Bank's ('BBpi') announcement that it will buy back Thai baht (THB) 10.8 billion (US$257.1 million) worth of warrants from the Financial Institutions Development Fund (FIDF) for THB6.58 billion will not affect Standard&Poor's ratings on the bank. Krung Thai Bank is also planning to restructure its ordinary share capital by writing off accumulated losses against share capital and reducing the par value of each equity share. Although the warrant buyback has reduced the bank's capitalization, in conjunction with the ordinary share capital restructuring, it could improve Krung Thai Bank's attractiveness to equity investors. The action on the warrants removes the overhanging effect over the bank's share price, while the ordinary share capital restructure enables the bank to
