Moody’s sets outlook rating to ‘negative’ for Cambodia

US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings.

“The negative outlook reflects a deteriorating external position as illustrated by the severe widening of the current account deficit, which Moody’s expects to remain wide – albeit narrowing – over the next few years, raising financing concerns,” the New York City-based firm said in a statement.

Citing “downside risks” to post-Covid-19 recovery stemming from a “weakening” of growth in the US and EU, Cambodia’s top export markets, as well as in China and other jurisdictions with significant economic ties to the Kingdom, Moody’s says it expects real gross domestic product (GDP) growth to remain below the seven per cent annual average logged in the 2010-2019 decade in “the next few years”.

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