Strong franchise as second-largest commercial bank in Thailand; Majority government-owned bank, used as a conduit to support government initiatives; and Adequate capitalization. High legacy NPA though improving; Adequate profitability driven by its low non-interest income contribution; and Challenging operating environment in Thailand. The counterparty credit rating on Krung Thai Bank Public Co. Ltd. (KTB) reflects 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+/Negative/A-2; local currency A/Negative/A-1). The rating on KTB is also underpinned by its adequate business and financial profiles. KTB plays a key role in the Thai economy by providing credit to important economic sectors and acting as the payment-processing agent for
