Krung Thai Bank Public Co. Ltd.'s (KTB) stand-alone credit profile is undermined by its very poor asset quality, weakened capital base, and impaired near-term earnings generating capacity. The bank's profile is supported by its majority government ownership, and the expectation that the sale of problem loans to an asset-management company will substantially improve the bank's financial position in the near term. As one of Thailand's largest banks, KTB has played a key role in the rationalization and reform of the domestic financial system. Standard&Poor's expects that the bank will continue to benefit from government support in the medium term, although this cannot be assured in the longer term. Despite its strong market position, KTB's performance has historically lagged
