The public information rating on Krung Thai Bank Public Co. Ltd. (KTB), the second-largest bank in Thailand by asset size, reflects the government support it receives from being a state-owned bank, as well as the stabilization in its credit quality and funding profile. Plans to privatize the bank in late 2002 via a public offering of shares have been announced, although several uncertainties remain, including the timing of the exercise to reduce the government's ownership in the bank to a minority stake of about 49%. On partial privatization, KTB's rating will be based on its stand-alone credit profile. The rating could be lowered, subject to specific details of the privatization exercise including the emergence of any new substantial institutional shareholder.
