The ratings on Thailand's second-largest bank, Krung Thai Bank (KTB), reflect its efforts made in improving its stand-alone financial profile--tackling its problem assets and adopting a more realistic approach in raising provisioning to a level commensurate with the risk in the operating environment. The ratings also incorporate the implicit support from its majority ultimate owner, the government of Thailand, in light of the bank's significant involvement in public policy projects. The bank's role involves, among other things, providing credit to important economic sectors and for the implementation of government policies. As the government aims to privatize KTB, the benefits of state-ownership should diminish over time. Emphasis is likely to shift to the bank's own financial measures and ability to enhance
