Krung Thai Bank Public Co. Ltd. (KTB) was assigned 'BB' long-term and 'B' short-term counterparty credit ratings on Sept. 18, 2003. The outlook is positive. The ratings on KTB, Thailand's second largest bank, reflect the stabilization in its stand-alone financial profile, underpinned largely by the transfer of impaired loans to the government asset management companies. Supporting the rating also is the implicit support from majority ultimate owner, the government of Thailand, in light of KTB's involvement in providing credit to government-endorsed projects and state-owned enterprises. As the government seeks to privatize KTB, the implied benefit arising from state-ownership can be expected to diminish over time; this has been factored into the ratings. Going forward, the emphasis is likely to shift
