Connect with us

Banking

Moody’s downgrades Thailand’s rating outlook to stable from positive

The decision to change the outlook to stable reflects Moody’s view that the drivers of the outlook change to positive last July have become significantly less likely to materialize.

Published

on

Singapore, April 21, 2020 — Moody’s Investors Service (“Moody’s”) has today changed its outlook on the Government of Thailand’s issuer ratings to stable from positive and affirmed the Baa1 issuer and local currency senior unsecured ratings.

Moody’s has also affirmed Thailand’s foreign currency commercial paper rating at P-2.

The decision to change the outlook to stable reflects Moody’s view that the drivers of the outlook change to positive last July have become significantly less likely to materialize.

Ongoing political tensions and deep economic shock

In particular, in light of delays in policy implementation and ongoing political tensions, and more recently, the deep economic shock caused by the coronavirus outbreak, government policy is unlikely to effectively implement large investment in physical and human capacity that would boost the country’s competitiveness over the near to medium term.

The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, and falling asset prices are creating a severe and extensive credit shock across many sectors, regions and markets.

The combined credit effects of these developments are unprecedented. Moody’s regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and
safety.

Sharp slowdown in tourist arrivals

For Thailand, the current shock transmits mainly through a sharp slowdown in tourist arrivals, exports of goods, and economic activity.

Long-term infrastructure investments will be further delayed as policy focus shifts to offsetting effects of the economic shock, compounding the apparent difficulties in designing and implementing policies for the current coalition.

The affirmation of Thailand’s Baa1 ratings reflects Moody’s view that the country’s strong public and external finances provides Thailand with significant room to counter shocks, including those currently emanating from the coronavirus.

Thailand’s past record of solid fiscal metrics suggests that fiscal repair is likely after a marked increase in the government’s debt burden in the next few years. In addition, Moody’s expects that Thailand’s large and diverse economy will absorb the current shock to economic growth without a lasting impact on its growth
potential.

Moderate competitiveness and labour skills shortages

These credit features are balanced by an ageing population, moderate competitiveness and labour skills shortages, which will weigh on the economy’s medium- to long-term growth if unaddressed.

Thailand’s country ceilings remain unchanged. The long-term foreign currency bond ceiling remains at A2, and the short-term foreign currency bond ceiling at P-1. The long-term foreign currency deposit ceiling remains at Baa1, and the short-term foreign currency deposit ceiling at P-2. Furthermore, the long-term local currency bond and deposit ceilings remain unchanged at A1.

Banking

The Importance of E-Wallets for Online Gaming Sites

With e-wallets and cryptocurrency being the most relevant options, banks have been put on the side burner, especially when e-wallets and cryptocurrency allow for fast electronic transfer, that is done instantly.

Published

on

e-wallet

Online gambling is an industry that needs to keep up with technological trends, to make sure it stays relevant and convenient within the gambling community.

(more…)
Continue Reading

Banking

Thai Government to issue Bt50 bln ( $1.57 bln)Savings Bonds to fund COVID-19 Relief Measures

The special savings bonds are available via the “Sasom Bond Mung Kung” e-wallet, abbreviated to “Sor Bor Mor” in Thai on Krungthai Bank’s Pao Tang mobile app, and through four dealer banks. The minimum purchase of these bonds is 1,000 baht, without no maximum. Interest is paid twice a year.

Published

on

BANGKOK (NNT) – Thailand’s Public Debt Management Office (PDMO) plans to issue “Ying Aom Ying Dai” (the more you save, the more you earn) government savings bonds, worth 50 billion baht, next month, aiming to use the funds to finance state projects to ease the impacts of the pandemic.

(more…)
Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,162 other subscribers

Wise

Recent