KTB's sub-debts rated "AA'

 KTB has an option to issue up to a further Bt10 billion debentures. The proceeds will be used for liquidity management and to strengthen tier-2 capital.
 The rating company reasoned that the rating is based on Fitch’s expectation of state support due to the strong linkages through ownership, control and evidence of support. The rating of KTB’s subordinated debentures, at one notch below the bank’s issuer rating, takes into account Fitch’s view that state support could be extended to these debt instruments.
 KTB is Thailand’s second-largest bank with about a 17 per cent market share in system assets as of end-December 2011. Its major shareholder, with a 55 per cent stake, is Financial Institutions Development Fund, a unit under the Bank of Thailand.
 Notwithstanding the current ownership stake, Fitch believes there is a high probability that KTB would receive state support if needed, due to its size and importance to the financial system and economy.