Standard & Poor's Ratings Services sees limited immediate impact on the sovereign credit support for Thailand in the wake of Monday night’s bombing at Bangkok’s popular Erawan Shrine that killed 20 people and injured another 125.
In a statement issued Tuesday afternoon, S&P gave the sovereign credit ratings for Thailand, foreign currency BBB+/Stable/A-2; local currency A-/Stable/A-2) are unaffected.
However, it said the attack had increased uncertainties over political stability and would put additional pressure on near-term economic prospects.
S&P said weaker tourism, at least in the next two to three quarters, would likely hurt Thailand's economic growth. The explosion could have a longer-lasting impact on visitor numbers compared with previous incidents in the past decade.
The agency expected tourists to be more wary this time as the incident appeared to be aimed at creating casualties in a venue popular with foreign visitors.
The latest official release indicated that Thailand's economic performance remained weak in the first half of 2015 despite a sizable increase in public spending.
“A slowdown in the tourism sector would further dampen growth. This would weaken sovereign credit metrics, including economic growth and fiscal indicators, unless an unexpectedly swift improvement in political stability materialises,” the agency noted.
