This is what could happen if Mitsubishi UFJ acquires Bank of Ayudhya

BAY could benefit from MUFG's group support.

In a statement, Standard & Poor's Ratings Services said that it will review its ratings on Bank of Ayudhya Public Co. Ltd. once reports that Mitsubishi UFJ Financial Group Inc. plans to acquire the Thailand-based bank are confirmed. Both the entities have not yet confirmed the deal.

If MUFG infuses capital into BAY, or the Thai bank's capital adequacy rises by way of the bank's merger with MUFG's Thailand business, it could positively affect our assessment of BAY's capital and earning score, which we currently assess as moderate. Even a moderate capital infusion could raise our assessment of BAY's capital and earning to an adequate category.

BAY could also potentially benefit from group support, depending on its importance to the overall regional expansion strategy of the MUFG group, the degree of management and operational integration, and the potential likelihood of financial support that MUFG group may extend to BAY, if MUFG acquires majority stake in the bank. However, this potential support may fructify only over time.

According to a number of media reports on June 22, 2013, MUFG aims to take over BAY by bidding for at least 51% of the outstanding shares that U.S.-based General Electric Co. and other major shareholders hold. General Electric has a 25% stake in the bank. BAY has informed the Thailand stock exchange that General Electric has not yet informed the bank on this matter. MUFG says it has yet to make a decision.