The ratings on Krung Thai Bank Public Co. Ltd. (KTB), Thailand's second-largest bank, reflect the stabilization in the bank's stand-alone financial profile, which is underpinned largely by the transfer of impaired loans to government-owned asset management companies. Moreover, the bank's funding and liquidity position is sound, supported by its strong market share of 18%-20% of domestic system deposits. Also supporting is the implicit support from its majority ultimate owner, the government of Thailand, in light of the bank's involvement in public policy projects. The bank's role involves, among other things, providing credit to important economic sectors and for the implementation of government policies. As the government aims to privatize KTB, the benefits of state-ownership should diminish over time. Emphasis is
