Strong franchise as second-largest commercial bank in Thailand, and with majority government ownership; Improving underlying profitability; and Adequate capitalization. Below industry average loan quality, although it is improving; and Operating income mix. The ratings on Thailand's second-largest bank, Krung Thai Bank (KTB), reflect the improvement in its stand-alone financial profile, underpinned by an improving asset quality and underlying profitability. The ratings also incorporate the implicit support from its majority ultimate owner, the government of Thailand, with which it has a close relationship. The bank's role involves, among other things, providing credit to important economic sectors and acting as the payments processing bank for the government and state-owned agencies. Nevertheless, with the current new management team, the emphasis of the bank
