Moody's affirms Cambodia issuer rating

Singapore — Moody's Investors Service has affirmed Cambodia's government issuer rating at B2 with a stable outlook.

The rating is based on the view that Cambodia's underlying credit strengths are expected to withstand the impact of recent political tensions and labour unrest in the garment industry.

The ratings agency based its decision on Cambodia's healthy economic outlook, limited vulnerability to fiscal and external funding stress and fiscal consolidation from fiscal stimulus originally in response to the global financial crisis.

Moody's has also revised Cambodia's local currency country risk ceiling to B2, in line with the sovereign rating, from Ba1 previously.

"We expect that real GDP growth will be sustained at 7% in 2013, down slightly from 7.3% in 2012, while strikes and labour unrest could result in a slight moderation to 6.9% in 2014," said Moody's.

"Assuming a return to political stability, Moody's expects growth in Cambodia to trend higher to 7.1% by 2015."

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