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Protests to slow Thai economy but no ratings downgrade: Moody's

SINGAPORE - Thailand's political unrest could slow down the economy but the current situation does not merit a ratings downgrade, credit rating agency Moody's said Thursday.

The anti-government protests have so far been limited to the capital Bangkok and have not reached a point where they threaten the country’s fiscal position, Moody’s sovereign risk analyst Steffen Dyck said.

"If political instability develops to a degree that these credit fundamentals really weaken deeply we will take a rating action," he told AFP.

"Or if we will see any deviation from fiscal discipline that will result in the massive widening of fiscal deficit and the ramp up in public debt, this will trigger a negative rating action," he added.

However Moody’s, which has assigned Thailand a Baa1 rating with a stable outlook, raised concerns about the impact of the protests on the country’s economic growth.

AFP


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