Moody's Investors: Thailand can survive political crisis

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Moody's Investors: Thailand can survive political crisis
The Nation

BANGKOK: -- Thailand's credit fundamentals are strong enough to withstand political crisis, according to Moody's Investors Service.

It said that while it sees a negative impact on growth, at this point in time Thailand’s sovereign credit profile remains consistent with its Baa1 rating level and stable outlook.

Moody’s expects the political situation to stabilise by the second half of 2014, and assumes that elections for a new government will be completed and a government formed, likely by July as the political schedule is currently unfolding.

"We also expect the ongoing protests to remain concentrated in certain areas in Bangkok and do not foresee significant physical disruptions to vital economic sectors, such as manufacturing or tourism," said Steffen Dyck, an Assistant Vice President and Analyst for Moody's in a release detailing the new Credit Focus on the Government of Thailand. The report presents a detailed discussion of Moody’s baseline scenario for 2014, the links it sees between the political crisis and Thailand’s creditworthiness, as well as the country’s credit fundamentals.


-- The Nation 2014-03-06

[Costas2008]

The tourists are happy, Moody's happy, this country is a paradise to live in

[shaurene]

How can Moody's say Thailand is financially ok when they cannot pay their farmers for the rice, is this for real.

[Thai at Heart]

How can Moody's say Thailand is financially ok when they cannot pay their farmers for the rice, is this for real.

Go and read a bit. It is not that they don't have the ability to do so, it is that they are legally prevented from doing so.

[marcusd]

I think Moodys is reading TATS figures. TOURISM they are basing their findings on no impact on tourism. Wont they be in for a nasty shock next audit season?

[Bel Mondo]

President Putin - Please bring your troops over here

[brownbear]

I think Moodys is reading TATS figures. TOURISM they are basing their findings on no impact on tourism. Wont they be in for a nasty shock next audit season?

I think you are probably spot on. Rubbish in, rubbish out. On the other hand I have some difficulty with a rating agency stating their view that a sovereign state is going down the pan. Brown envelope economy remember (sorry, that was rhetorical, how could any of us forget!).

[Krataiboy]

Is this the same Warren Buffet-owned outfit which gave the thumbs up to the junk, derivatives-linked mortgages which caused the economic collapse of 2008?