The Bank of Thailand has raised concerns over the Thai capital and bond markets, given domestic political uncertainty and default risks pertaining to corporate debentures.
The corporate bond market faces higher risks of an increase in defaults of corporate bonds compared to 2022. In addition, more companies are receiving negative rating actions on their credit ratings and credit outlook as a result of individual factors relating to each enterprise, according to the central bank’s statement.
“The capital market has become more volatile due to domestic political uncertainty. At the same time, corporate governance issues of listed companies have also prompted investors to exercise more caution on their investments,” the statement said.
Even though the risks to financial stability are currently limited and the overall corporate bond market remains…
