JCR affirms ratings on Thai bonds

JCR affirms ratings on Thai bonds

The Japan Credit Rating Agency (JCR) has affirmed Thailand's foreign currency long-term senior debt raiting at A-, and local currency long-term senior debts at A, but has lowered its outlook for Thailand from stable to negative.

The agency said the Thai economy slowed down to 2.9% in 2013 from 6.5% in 2012, but the Thai government still has a comparatively sound fiscal position coupled with stability in the banking system and a comparatively strong external balance, so it is less likely that Thailand will fall into a financial crisis or a foreign currency liquidity crisis.

It was of the view the protracted political and social unrest in Thailand stems from deep rooted and complicated internal issues, the statement said.

The JCR expectedhailand’s current account deficit to decrease in 2014 as exports were likely to pick up following the recovery in the world economy.

However, as FDI approvals have declined drastically in volume due to the influence of the political crisis, foreign direct investment was expected to fall sharply in 2014.

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