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.