Standard & Poor's Ratings Services shed greater light on the reasons for placing its counterparty credit ratings on Bangkok Bank on CreditWatch, in a published report titled, "Credit FAQ: The Tie Between Sovereign Rating And Bank Ratings In Thailand." Standard & Poor's had placed the ratings on Bangkok Bank on CreditWatch with negative implications on Sept. 19, 2006, while the ratings on its other banking peers were unaffected.
 
"Because of extraordinary government support being incorporated into Bangkok Bank's ratings, they are at the same level as the foreign currency sovereign rating ('BBB+/A-2'). Consequently, any possible negative impact on the ratings of the sovereign, will naturally affect the ratings on Bangkok Bank," said Standard & Poor's credit analyst Adrian Chee. "The other Thai banks that Standard & Poor's rates have relatively lower credit ratings--'BBB/A-2' or below. Therefore, only a downgrade of two notches or more in the sovereign ratings is likely to have an immediate impact on these banks' ratings," Mr. Chee noted.

Sourced From: Standard & Poor's