Moody's lifts Government Housing Bank

Moody's Investors Service said it affirmed Government Housing Bank of Thailand's foreign currency bank deposit rating of Baa1/P-2.

Moody's said it upgraded the company's baseline credit assessment and adjusted baseline credit assessment to Ba2 from Ba3.

The agency said it affirmed its local- and foreign-currency counterparty risk rating of Baa1/P-2 and counterparty risk assessment of Baa1(cr)/P-2(cr).

The outlook is stable.

The company's foreign-currency deposit rating is aligned with Thailand's sovereign rating, owing to the bank's important policy role, Moody's said.

Such support acts as a buffer against the bank's weak, but improving, standalone credit assessment, the agency said.

The credit profile is underpinned by the Government Housing Bank Act BE 2496, which requires the government to help maintain certain capital levels at the bank, the agency said.

Moody's said it believes the government will take action to minimize or prevent the systemic consequences of a failure of a large deposit-taking institution, Moody's said.

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