Thailand's political restart aims at bridging divisions: S&P

SINGAPORE -- The election of a new Government has allowed Thailand's political system to evolve in response to societal demands, even though the process is gradual, said S&P Global Ratings in a report published today.

"With the election of the new Thai Cabinet recently, the country crossed another milestone in its return to a participatory form of Government," S&P says, adding that "we expect the new Government to focus on healing the divide in the country".

"If the efforts show progress in the next few years, the much-talked-about reconciliation in Thailand may start," it says. "We believe this may allow a more normal form of democratic politics to take root.

"The Thai Government's strong credit metrics, at the 'BBB+' foreign currency credit rating level, may improve further in this scenario."

S&P says the risk is that the Thai economy's weakened competitiveness "exacerbates the disparities in the country before the impact from these efforts can be felt".

S&P Global Ratings credit analyst, Kim Eng Tan, said: "Political instability may become a greater issue again if that happens."

But Tan believes the newly-elected Government has a stronger mandate to implement changes embracing long-lasting impact than did the coup Government.

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