The rating outlook on Krung Thai Bank Public Co. Ltd. (KTB) is stable, reflecting our expectation that the bank is likely to maintain its financial profile over the next 12-24 months. We could lower the rating if KTB's asset quality weakens materially. Alternatively, we could upgrade the bank if its pre-diversification risk-adjusted capital (RAC) ratio improves to above 7% on a sustained basis. Standard&Poor's Ratings Services bases its rating on KTB on the bank's "adequate" business position, "moderate" capital and earnings, "adequate" risk position, "average" funding, "adequate" liquidity, as defined under our criteria. The rating on KTB is two notches higher than the bank's stand-alone credit profile of 'bb+' to reflect our view of a high likelihood of
