Fixed Income Research | Financials | Credit | Motivational Writer
If Moody's Cuts Thailand's Rating, Here's How It Hits Bank Bonds Thailand's new coalition led by Anutin Charnvirakul, may allow pro-growth reforms, but economic challenges are substantial with limited policy space. Moody's negative outlook on the nation raises risks of sovereign downgrade if the economic crisis deepens, which can cascade to banks. A Moody's downgrade to Thailand's sovereign rating -- should one occur -- would probably trigger ratings cuts for banks, reflecting their sovereign-linked support. It would also lead to downgrades for banks’ subordinated instruments. Bangkok Bank’s dollar Tier 2 bonds are currently rated Baa3 by Moody’s. What’s the impact if it falls to junk? Which Thailand bank’s credit resilience can hold up better than peers against this backdrop? Together with, Tamara Henderson Click here for our views on the Bloomberg Terminal: https://lnkd.in/g7m6zUGx Tamara Henderson: Bloomberg Economics Rena Kwok (郭术甯), CFA: Asian Financials (Credit) Subscribe to my bio (BIO RENA KWOK <GO>) on the Bloomberg Terminal for timely updates on Asian financials credits. #banks #thailand #sovereign #creditresearch #fixedincome
