Moody's says Thai rating not under threat from rice scheme

Moody's says Thai rating not under threat from rice scheme

BANGKOK - Thailand's credit rating is not in danger of being downgraded because of the cost of a rice intervention scheme, rating agency Moody's said on Thursday, after it warned this week that losses from the scheme might threaten the goal of a balanced budget.

"The rating is not under threat. If you look at the credit analysis that we published in late April, there are a lot of factors that support the rating at the current level of Baa1, and that's also why we have a stable outlook," Moody's sovereign risk analyst Steffen Dyck told Reuters.

Moody's Baa1 rating is at the lower to medium end of the investment grade scale.

The government has given very little information on the intervention programme since it started in October 2011. On Wednesday, after the warning from Moody's set off a political row, Prime Minister Yingluck Shinawatra told her commerce minister to clarify the costs.

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