If mDNS is installed in OES and LOCAL domain is used, the DNS name resolution on .LOCAL domain by default go to mDNS and kinit utility try to resolve the hostname of the domain controller. If mDNS is not properly configured in the network, then the name resolution and kinit fails.
To resolve this issue, change the order of name resolution method in /etc/nsswitch.conf as follows:
Old configuration: "hosts: files mdns4_minimal [NOTFOUND=return] dns"
New configuration: "hosts: files dns mdns4_minimal [NOTFOUND=return]"