A prolonged political deadlock lasting into the second half of the year may prompt a reassessment of its rating outlook for Thailand, according to Fitch Ratings.
“A continued blockage in the formation of a full government, or a government with authority, into the second half of the year could lead us to reassess the rating outlook,” Andrew Colquhoun, head of Asia-Pacific sovereign ratings at Fitch, said in an interview in Singapore on Thursday. “If we have a government that doesn’t have the ability to implement a budget in 2015 that would be negative for the credit.”
Protests that began in late-October to oust Prime Minister Yingluck Shinawatra shut down parts of Bangkok, sparked clashes that killed 23 people and disrupted the election, preventing the opening of parliament and the formation of a new government. Consumer confidence fell to its lowest in more than 12 years in February, and the central bank on Thursday said the economy will grow below its potential of 4-5% this year.
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