Connect with us
intralinks

Banking

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

The affirmation of Thailand’s Baa1 ratings reflects the country’s very strong public and external finances that provide Thailand significant room to counter shocks.

Published

on

Moody’s Investors Service (“Moody’s”) has today changed the outlook on the Government of Thailand’s issuer ratings to positive from stable and affirmed the Baa1 issuer and senior
unsecured ratings.

The decision to change the outlook to positive reflects Moody’s view that investment in physical and human capital, in the context of a lengthening track-record of a predictable and stable macroeconomic environment, may over time boost Thailand’s competitiveness.

Such developments could partially offset the drag on the country’s growth potential from gaps in human capital development and an ageing population.

The affirmation of Thailand’s Baa1 ratings reflects the country’s very strong public and external finances that provide Thailand significant room to counter shocks.

Thailand’s large and diverse economy also supports shock absorption capacity and the rating.

By contrast, the Baa1 rating also takes into account credit constraints from lingering, albeit easing, political risk and, longer-term structural challenges related to an ageing society and labour skills shortages that weigh on growth potential.

Loading...

In addition, Moody’s has also affirmed Thailand’s local currency senior unsecured ratings at Baa1 and the foreign currency commercial paper rating at P-2. Concurrently, Moody’s has affirmed the local currency senior unsecured rating for the country’s central bank, the Bank of Thailand, at Baa1.

Click to comment

Leave a Reply

News

Climate change raises asset risks for banks in Asia-Pacific

Climate change and related government policies raise asset risks for banks in Asia-Pacific, while legal and reputational risks are growing while large, diversified banks in the region are better able to cope with these risks and preserve their credit strength

Published

on

Climate change and related government policies expose Asia-Pacific banks to physical climate risks, as well as risks that stem from sudden changes in asset values as economic priorities shift, according to Moody’s Investors Service in a new report.

(more…)
Continue Reading

Banking

Thai banking system remained resilient amid new wave of COVID-19

Thai banking system remained resilient with high levels of capital fund, loan loss provision and liquidity to accommodate loan demand and weather increasing economic uncertainties arising from the new wave of COVID-19, says Bank of Thailand

Published

on

According to Ms. Suwannee Jatsadasak, Senior Director, Bank of Thailand, reported on the Thai banking system’s performance in the first quarter of 2021 that the Thai banking system remained resilient with high levels of capital fund, loan loss provision and liquidity to accommodate loan demand and weather increasing economic uncertainties arising from the new wave of COVID-19.

(more…)
Continue Reading