S&P holds Thai ratings steady as court nullifies election results

SINGAPORE – Standard & Poor’s says the decision of Thailand's Constitutional Court to nullify the February elections has no impact on its sovereign credit ratings on Thailand (foreign currency BBB+/Stable/A-2; local currency A-/Stable/A-2; axAA/axA-1), because these ratings “already reflect our expectations of protracted and possibly increasing political risks”.

 “The decision sets back the process of electing a new Government and prolongs the current political instability,” S&P says. The court ruled that the election breached the Constitution because it was not completed in one day. Protestors had prevented candidates from registering for the election in a number of constituencies.
“In our view, the court decision dims prospects for any near-term resolution of Thailand's political split,” S&P says.”
“Although months of blockade and street protests failed to unseat the current Government, there is now the risk that it could be removed on legal grounds in the near future. Current investigations by the Thai National Anti-Corruption Commission on Prime Minister Yingluck Shinawatra and several parliamentarians of the ruling Pheu Thai party have the potential to unseat the current caretaker Government.” www.standardandpoors.com (ATI).