Economists contest Moody’s downgrades
In the past month, ratings agency Moody’s has downgraded its outlook for two of Cambodia’s largest commercial banks. On September 2, Acleda Bank’s performance outlook went from “stable” to “negative” due to risks associated with rapid credit growth and a drain on local currency by depositors. Then, on September 19, Moody’s handed out the same negative outlook to Cambodia Public Bank, a subsidiary of Malaysia’s Public Bank Berhad… Despite the concerns, economists say the assessments do not paint an accurate picture of the country’s banking sector. Loan disbursals here account for a much smaller share of gross domestic product when compared to Thailand and Vietnam, and investors say that poor access to credit, rather than loose lending practices, is the biggest threat to Cambodia’s economic growth…
