“Other strengths include prudent monetary, macroeconomic and debt management, sustained external strength despite erosion of the post-Asian financial crisis current account surplus, a relatively strong growth outlook and an overall healthy banking system. Thailand’s fundamentals and existing buffers compare favorably to other Moody’s-rated sovereigns that have recently experienced revolutions, or are undergoing political crisis,” said Moody’s in a statement.
Moody’s points out that “Egypt, Tunisia and Bahrain also highlight the potential speed and magnitude of sovereign rating downgrades if political conflicts intensify towards, or result in, a violent overthrow of the government.”
However, the Market Vectors Egypt Index ETF (NYSEArca: EGPT) is one of this year’s best single-country emerging markets ETFs and has traded slightly higher after index provider Russell Investments said earlier this week it is demoting North Africa’s largest economy to frontier markets status from emerging markets classification. [Watch Egypt ETF After Market Reclassification]
THD is up more than 15% this year, indicating it too has weathered geopolitical storms.
iShares MSCI Thailand Capped ETF
