Bangkok--22 Jun--Moody's
Moody's Investors Service has assigned a foreign currency rating of P-2 to the Kingdom of Thailand's US$2,000,000,000 Euro-Commercial Paper Program, the purpose of which is to refinance existing debt and to support the government's national economic and social development projects.
The Kingdom of Thailand's P-2 short-term foreign currency rating is based on the government's Baa1 long-term foreign and local currency bond ratings.
The long-term ratings currently have a negative outlook owing to the resurgence in political turbulence in late 2008 which, if not ameliorated, may threaten to erode the investment environment and the effectiveness of Thailand's economic and fiscal policies.
Support for the government's long-term ratings comes from a strong external payments position and relatively high level of official foreign exchange reserves, which have provided insulation against the global financial crisis. In addition, Thailand's track record of a prudent fiscal policy allows the government scope to deal with the contractionary effects of the global recession.