Downgrade Thb Currency Rating

[neil324]

Oh come on the current strength isn't based on fundamentals. The Baht isn't the Yen you know.

so you think the ¥EN fundamentals are strong? please name a few of these fundamentals.

I meant the perceived safety in the Yen, like the Dollar and Swissy. But hey i won't avoid a question unlike some. The Yen appricieated because the carry trade unwinded and the flight to safety.

apart from the nowadays Swissy = BINGO!

Yawn....

[Bowery99]

The investment thing in place after 1987s fall is the reason the economy here is somewhat strong. Thais are still shopping........ The baht doesn't bounce the way it used to for a lot of reasons, most of them protectionist. Some of them are artifical and the red yellow thing may blow it up at some point.

[geriatrickid]

Fitch also downgraded on April 16. It's an interesting Press Release

http://www.easybourse.com/bourse-actualite...owngrade-652167

here are some highlights, note the 2 highlighted sections;

Fitch Ratings-Bangkok/Singapore-16 April 2009: Fitch Ratings has today downgraded the international ratings of four Thai banks and revised the Outlook to Stable from Negative. The action follows the downgrade of the Kingdom of Thailand's Long-term foreign and local currency Issuer Default Ratings (IDR) to 'BBB' from 'BBB+' and to 'A-' (A minus) from 'A', respectively, and the revision of the Outlook to Stable from Negative. The agency has also downgraded Thailand's Short-term foreign currency IDR to 'F3' from 'F2' and the Country Ceiling to 'BBB+' from 'A-' (A minus).

The downgrades of Krung Thai Bank Public Company Limited (KTB) and Export Import Bank of Thailand (EXIM) reflect the weakening in the government's ability to provide support, in case of need.

The ratings of the five major private banks - Bangkok Bank Public Company Limited, Siam Commercial Bank Public Company Limited, Kasikornbank Public Company Limited, Bank of Ayudhya Public Company Limited and TMB Bank Public Company Limited - were unaffected by the sovereign downgrade. The ratings of these five private banks are driven more by standalone financial strength which remains relatively strong although the severe economic contraction (Fitch GDP forecast -3.8% in 2009) could affect their financial performance over the next two years, which is reflected in their Negative Outlooks.

interesting that the rating agency sees a different outcome than that stated by the MoF. It's not reassuring to read that 3rd parties don't think the country has the wherewithall to support vital econoic components. GDP forecast doesn't match the MoF statements either.