Second-largest commercial bank in Thailand. Implicit government support due to majority state ownership. Improving underlying profitability. Need to enhance operating income sources. The counterparty credit ratings on Krung Thai Bank Public Co. Ltd. (KTB) reflect the bank's strong franchise as Thailand's second-largest commercial bank, and the implicit support from its ultimate majority owner, the government of Thailand (foreign currency BBB+/Stable/A-2; local currency A/Stable/A-1). The ratings on KTB also benefit from the sustained improvement in the bank's profile, which is characterized by satisfactory profitability, and adequate loan quality and capitalization. KTB plays a key role in the Thai economy by providing credit to important economic sectors and acting as the payments processing bank for the government and state-owned agencies. Due to
