Fitch rates Krung Thai Bank hybrid A+

Fitch Ratings said it assigned a national rating of A+(tha) to Thailand-based Krung Thai Bank plc's hybrid tier 1 securities, which will be issued in the domestic market.

The bank has a long-term foreign-currency issuer default rating of BBB+ with a stable outlook, short-term foreign-currency rating of F2, foreign-currency subordinated debt rating of BBB, foreign-currency rating on offshore hybrid tier 1 securities of BBB-, individual rating of C/D and support rating of 2. The bank's national long-term rating is AA+(tha) with a stable outlook, along with a national short-term rating of F1+(tha) and national subordinated debt rating of AA(tha).

Fitch said the bank's senior ratings are underpinned by strong government ownership and support, as well as improving financial strength, although this support is less likely for more junior debt.

While government ownership and control provide support to the senior debt ratings, these factors have tended to weaken the bank's standalone financial performance, the agency said.

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