PM satisfied with Moody’s ratings update report

[Lite Beer]

PM satisfied with Moody’s ratings update report

BANGKOK, 29 May 2015 (NNT) – The Prime Minister is satisfied with the rating report from Moody’s Investors Service, where Thailand received a BAA1 rating due to strong support from the government's financial position, says the government spokesman.

The Prime Minister’s Office Deputy Spokesman Maj Gen Sansern Kaewkamnerd has revealed that Moody's Investors Service, an international credit ratings providers company, issued the credit rating report on 28 May 2015 in which the sovereign credit rating of the Thai government remains at a stable BAA1 due the government's strong financial position.

The report states that the high level of foreign exchange reserves limits the country’s external vulnerabilities, while the well-diversified economy is considered as another credit strength. The report added that the military coup on 22 May 2014 restored public order and stemmed economic uncertainty.

The PMO Deputy Spokesman has said that the Prime Minister expressed his gratitude for the efforts from all sectors that have contributed to the recovery of politics and the economy. The contribution allowed Thailand's recovery to be accepted by foreign countries, and had regained their confidence.

The PMO Deputy Spokesman has also affirmed that the government intends to establish both political and economic reform for sustainability rather than implementing populist policies which may be harmful to the economy in the long run.

Thailand currently possesses foreign exchange reserves at approximately 16 billion US dollars, while the public debt rate is at 45 percent per GDP, which is lower than the current acceptable rate at 60 percent per GDP.

-- NNT 2015-05-29

[Cats4ever]

How these rating agencies survived their paid appraisals of bundled mortgage debts that made a giant contribution to the Financial Crisis of 2008, amazes me. This was paid enterprise rather than free enterprise.

[shirtless]

Moodys should get out of there hotel i think there report is very inaccurate.

[Srikcir]

Moody's is probably one of the most conservative rating organizations. It hesitates to make downgrades of foreign government bonds. So while it rated Thailand as BAA1 (lower medium grade), it noted some caution in its economy:

Thailand's growth prospects "dimmest" among ASEAN nations, Moody's, May 15, 2015.

- "Domestic recovery remains fragile."

- "Thailand's growth prospects are the "dimmest" among all ASEAN nations, on back of fragile domestic recovery and weak regional demand."

- "a pickup in consumption and investment remains elusive, while the country's export competitiveness is stuck in secular decline.

"Thailand's woes are also cyclical, stemming from falling commodity prices, which have suppressed farm incomes and agriculture production; consumer spending continues to fall on a year-ago basis. Weak regional demand has compounded the issue, weighing on other export-oriented industries; electronic and hard-disk drive production continues to fall, while the auto sector is facing stiff regional competition as a result of the relatively strong Thai baht"

Hardly very optimistic for Thailand's immediate economic future.

Note that Moody's recent rating is the same as it was prior to 2013Q4 during the Yingluck regime. And at that time Fitch and S&P rated Thailand the same as lower medium grade. Thailand is currently rated lower than Taiwan, Isle of Man, and Malaysia; slightly better than The Philippines, Italy, and Kazakhstan; and tied with Mauritias and Ireland.

Edited May 30, 2015 by Srikcir

[mikeinbangkok]

I am always amused by the enthusiasm of the experts in any field and economists who jump into bash Thailand ant any opportunity! Thier own turfs are in the shit which they don't see!

[elgordo38]

How these rating agencies survived their paid appraisals of bundled mortgage debts that made a giant contribution to the Financial Crisis of 2008, amazes me. This was paid enterprise rather than free enterprise.

They are all drinking the same Kool-Aid. How these rating agencies never saw the 2008 financial crisis coming is a true mystery. I think a few of them have paid penalties to the government along with all the crooked banks. I think they all consult the same oracle/fortune teller/Tarot card reader.