BAY outlook revised to positive

The rating company also said that the partnership will improve BAY's business profile and translate into better

financial performance in the medium term. Benefits from this collaboration will include transfer of

knowledge and technical skills in terms of products, risk management, and best practices.

"The ratings are also underpinned by BAY's position as one of the six largest commercial banks in the Thai banking system in terms of asset size, and by its sound franchise in the small and midsize enterprises segment," said Standard & Poor's credit analyst Ivy Tan.

 "Nevertheless, the bank's ratings remain constrained by the current challenging operating environment in Thailand. Given its

systemic importance in the Thai banking system, the ratings on BAY incorporate onenotch uplift

for expectations of extraordinary government support if the bank were under severe financial

distress."

 In the announcement today, S&P also affirmed the counterparty credit ratings at 'BBB/A3'.

- The Nation