Coronavirus lockdowns will slow the pace of economic recovery in the 10 ASEAN countries according to Moody’s Investors Service. The world’s biggest credit ratings company says that may harm the ability of borrowers to repay their debts, putting strain on the banking industry.
“Banks in Thailand, the Philippines and Indonesia are particularly vulnerable as their economies struggle with elevated numbers of virus cases, spiking uncertainties regarding their economies reopening. Yet, policy support for borrowers and the concentration of the impact on a few economic segments will limit the deterioration in banks’ overall asset quality,” said Senior Analyst Rebecca Tan.
Moody’s rates Thai banks Baa1 Stable and those in the Philippines and Indonesia Baa2 Stable. Any rating above or including Baa3 is considered investment grade.
Indonesia has been hit hardest by Covid-19 among…
