Moody's: rally to slow down Thai economy

[webfact]

Moody's: rally to slow down Thai economy

BANGKOK, 17 Jan 2014, (NNT) - The ongoing political protest staged by the People's Democratic Reform Committee (PDRC) would likely slow down Thailand's economic growth, according to the Moody's Investor Services, the world's renowned bond-credit rating agency.

Moody's has stated that there is no need to readjust Thailand's credit rating at the moment, as the protests are still restricted within the capital and have yet to post a real threat to the national financial status. However, it might reconsider its decision should Thai politics show visible signs of instability or lack of the ability to maintain its appropriate financial discipline that would compromise the country's basic credit value, or significantly increase public debts.

The rating agency indicated that currently Thailand's credit rating is steadily maintained at Baa1. However, Moody' s expressed its concerns over the PDRC's mass rally that it could affect the national economic growth, and the infrastructure spending plan. The rally would likely show its effects within the first 6 months of 2014, which may lower the nation's economic growth to3-4% , down from the 4.5% earlier targeted.

The agency is familiar with Thailand's political impasses, pointing out that it did not readjust the nation's credit rating during the 2006 and 2010 political unrest either, said Moody's.


-- NNT 2014-01-17

[laocowboy2]

Essentially they are saying " we already know that the political system runs like a fractious nursery class and that most politicians and all too many bureaucreats are corrupt. However only if either these factors or the demos etc seriously damage the economy will we move on the ratings".