The rice-pledging scheme on its own will not have a significant impact on the sovereign credit quality of Thailand, according to a report published today by Standard & Poor's Ratings Services.
Standard & Poor's does not expect to lower the BBB+ sovereign rating of Thailand because of the cost of the rice-subsidy scheme, the report said.
"Thailand's fiscal and debt metrics can accommodate the likely losses from the rice-pledging scheme, and will remain comfortably in the ranges commensurate with the current rating," said Standard & Poor's credit analyst Agost Benard.
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