MELBOURNE -- Standard&Poor's Creditwire 8/19/98 -- Standard&Poor's today affirmed its ratings on all rated Thai financial institutions (see table below) affected by the announcement of a financial sector restructuring plan by the Ministry of Finance and the Bank of Thailand on Aug. 14 1998. In addition, the 'Bpi' rating assigned to First Bangkok City Bank Public Co., Ltd. has been withdrawn following its announced takeover by, and merger with, Krung Thai Bank Public Co., Ltd. The formulation and announcement of the restructuring plan stems from the continuing deterioration of Thailand's financial system, which is undercapitalised and remains crippled with increasing asset-quality problems and declining profitability. The deterioration has significantly compromised the system's ability to recapitalize itself
