Local investors were rattled earlier this month after Moody's Investors Service sounded a warning that the government's rice scheme was "credit-negative" due to high losses and negative effects on Thai rice exports. The Bangkok Post spoke with Moody's analyst Steffen Dyck about the rice pledging policy and Thailand's current credit rating.
Moody's earlier this month stated that the rice subsidy scheme would not affect the country's credit rating. Can you expand on this?
We stated in our comment on June 3: "Recent ... and any future losses from the rice-buying scheme increase the difficulty of the government's task of reaching its goal of a balanced budget by 2017 and are credit-negative for the Thai sovereign."
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