Banking and finance stocks slid after S&P Global Ratings downgraded the credit ratings of four Thai banks on concerns over high household debt.
The credit ratings agency also said systemic risk may lift the level of non-performing loans (NPLs) and undermine the asset quality of companies in the finance group.
Fundraising costs could rise on concerns that the Federal Reserve may raise interest rates faster than the market expected if inflation remains high after this month’s hike.
S&P lowered its ratings for Siam Commercial Bank (SCB) and Kasikornbank (KBANK) to “BBB” from “BBB+”, and Krungthai Bank (KTB) and TMBThanachart Bank (TTB) to “BBB-” from “BBB”.
S&P said it affirmed its “BBB+” rating on Bangkok Bank because “the lender’s high systemic importance in Thailand offsets this risk”, in addition to Bank of Ayudhya, which benefits from being a strategic…
