Moody's may cut 11 Thailand banks

Moody's Investors Service has placed the debt and deposit ratings of 11 banks in Thailand on review for possible downgrade.

The ratings on downgrade review include:

Bangkok Bank's foreign-currency long-term deposit rating of Baa1 with a negative outlook, foreign-currency short-term deposit rating of prime-2 with a stable outlook and foreign-currency subordinated debt rating of Baa2 with a stable outlook;

Bank of Ayudhya's foreign-currency long-term deposit rating of Baa2, foreign-currency senior unsecured debt rating of Baa2 and foreign-currency short-term deposit rating of prime-2; all with a stable outlook;

Export-Import Bank of Thailand's foreign-currency issuer rating of A3 with a negative outlook;

Government Housing Bank's foreign-currency long-term deposit rating of Baa1 with a negative outlook and foreign-currency short-term deposit rating of prime-2 with a stable outlook;

Kasikornbank's foreign-currency long-term deposit rating of Baa1 with a negative outlook, foreign-currency short-term deposit rating of prime-2 with a stable outlook, local-currency deposit ratings of A3/prime-1 with stable outlooks and foreign-currency subordinated debt rating of Baa1 with a negative outlook;

Krung Thai Bank's foreign-currency long-term deposit rating of Baa1 with a negative outlook, foreign-currency short-term deposit rating of prime-2 with a stable outlook, local-currency deposit ratings of A3/prime-1 with negative outlooks, foreign-currency certificate of deposit program rating of Baa1 and foreign-currency preferred stock rating of Baa3 with negative outlooks;

Siam City Bank's foreign-currency long-term deposit rating of Baa2, foreign-currency senior unsecured debt ratings of Baa2/prime-3, foreign-currency subordinated debt rating of Baa3 and foreign-currency short-term deposit rating of prime-3; all with stable outlooks;

Siam Commercial Bank's foreign-currency long-term deposit rating of Baa1 with a negative outlook, foreign-currency short-term deposit rating of prime-2 with a stable outlook and local-currency deposit ratings of A3/prime-1 with stable outlooks;

Standard Chartered Bank's foreign-currency long-term deposit rating of Baa1 with a negative outlook; foreign-currency short-term deposit rating of prime-2 with a stable outlook; foreign-currency issuer ratings of A3/prime-2; local-currency issuer ratings of A3/prime-1 and local-currency deposit ratings of A3/prime-1 with stable outlooks;

TMB Bank's foreign-currency long-term deposit rating of Baa2; foreign-currency short-term deposit rating of prime-2 and foreign-currency preferred stock rating of B1; all with stable outlooks;

United Overseas Bank Thailand's foreign-currency long-term deposit rating of Baa1 with a negative outlook and foreign-currency short-term deposit rating of prime-2 with a stable outlook.

The review will analyze the extent to which Thailand can provide support to its banking system, if needed, Moody's said. The need for support is converging with the constraints of the government's own debt capacity as a result of the ongoing global economic and credit crisis, Moody's said.

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