Rating agencies remain vigilant on rice pledging | Bangkok Post: business

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Rating agencies remain vigilant on rice pledging

Budget high-wire act risks Thailand's credit

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Credit rating agencies are watching to see if spending on the state's rice pledging scheme will exceed the 500-billion-baht revolving budget, says a Finance Ministry source. 

Should the government fail to stick to the provided budget, it could add to the government's default risk in the rating agencies' view, according to the source, who spoke on condition of anonymity.

Moody's Investors Service in early June warned that potential losses from the rice pledging scheme would make it harder for the government to reach its goal of a balanced budget by 2017 and stood as a negative factor in Thailand's credit rating.

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