Moody’s rates Thai banks’ credibility “stabilized”

BANGKOK, 26 January 2010 (NNT) – A leading global credit rating firm, Moody’s Investors Service, heightens the credibility evaluation of Thai commercial banks from “poor” to “stabilized,” indicating an improvement in the country’s overall credibility.

Moody’s reported that the fragile political situation in Thailand might cut down the flexibility and abilities of the banks in handling a recession. Thai banks however still benefit from the government’s economic stimulus packages which have injected a significant amount of money into the system.

The Thai economy is expected to expand by 3-5% this year, recovering from -3% in 2009 while the banks’ credit growth rate could reach 10% this year after experiencing an ebb of -2% last year.

The world’s financial crisis has limited impacts on Thai commercial banks as they are not largely dependent on funds mobilization. A report suggests the asset quality of Thai banks has been stabilized since the end of 2008 with continuously declining bed debts, targeting at 5% this year.