Fitch Affirms BankThai’s Support Rating At ‘4′
Fitch Ratings has today affirmed BankThai Public Company Limited’s (BT) Support rating at ‘4′.
While the central bank’s Financial Institutions Development Fund (FIDF) still holds a 33% stake in BT, this state ownership is likely to be further reduced in the medium term.
The agency notes that any further dilution of government ownership could affect BT’s Support rating. The bank raised THB3 billion in capital in H107 from TPG Newbridge-related entities - which now hold a combined 33% stake in BT. The rating reflects Fitch’s view of the limited probability of state support for BT over the long term given the bank’s small size and, hence limited importance to the banking system. In the short term, Newbridge and the FIDF may provide support to enhance the bank’s viability on a going-concern basis.