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Credit agency Moody's says violent strikes, factory disasters pose risk to Bangladesh rating

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(Globalpost/GlobalPost)

Moody's says garment factory disasters in Bangladesh and frequent, increasingly violent strikes pose risks to the country's credit rating.

The ratings agency says Thursday that political tensions are damaging confidence in Bangladesh, which has a rating below investment grade.

A general strike was called earlier this week by opposition political parties to protest the deaths of at least 29 people during street demonstrations Monday.

Investor confidence in Bangladesh also dropped after a building that housed five garment factories collapsed two weeks ago, killing nearly 900 people.

Moody's says "continued political tensions are credit negative because they may further damage investor confidence in Bangladesh against the background of recurrent industrial disasters in the ready-made garment sector."

Bangladesh's rating from Moody's is Ba3, three notches below the lowest investment grade rating.

http://www.globalpost.com/dispatch/news/the-canadian-press/130511/credit-agency-moodys-says-violent-strikes-factory-disasters-