FACTBOX: Latest assessments of Thailand risk ratings

(Reuters) - Moody's revised its outlook for Thai sovereign ratings to negative from stable on Thursday, the latest downgrade of Thai risk assessments because of political instability that has increasingly been impacting on the economy.

The royalist anti-government People's Alliance for Democracy (PAD) has lifted its crippling siege of Bangkok's airports after a court ruling that disbanded the governing party, backed by ousted former Prime Minister Thaksin Shinawatra, for electoral fraud. But analysts say the ruling has done nothing to solve the fundamental power struggle undermining Thailand's stability.

Following is a round-up of political and country risk assessments for Thailand in the wake of the recent turmoil:

MOODY'S INVESTOR SERVICES

"Resilient to the political upheaval of the 2006 coup, Thailand's economic and financial performance has also withstood the historic volatility in commodity prices in the past two years, and the global financial crisis of the past year," Tom Byrne, Moody's regional credit officer, said on Thursday.

"It is not clear, however, whether Thailand's credit fundamentals will withstand the combined effects of the unfolding global recession on top of the ongoing domestic political discord and paralysis."

As well as cutting the sovereign rating outlook, Moody's cut its 2009 Thai GDP growth forecast to 0.5 percent from 3.0.

"The inability of the country's judicial and executive branches to prevent civil disobedience from causing major dislocations, not only with regard to the occupation of Government House, but also the airport seizures of the past week in Bangkok, suggest that Thailand's institutional strengths have become compromised," Byrne said.

IHS GLOBAL INSIGHT

IHS Global Insight downgraded its political risk rating for Thailand to 3.25 from 3 on Tuesday, and its security risk rating to 3.5 from 3.25.

"This reflects the suspension of political process and the heightened risk of military intervention, as well as widespread concerns of civil unrest," said analyst Kristina Kazmi.

She noted Thailand remains locked in a "cycle of instability" -- new elections would probably again hand a majority to proxies of Thaksin, given his strong backing from the rural population. This could lead PAD to resume protests.

"Thailand remains locked in this structurally flawed system for the foreseeable future," she said.

"To all intents and purposes, Thailand does not have a functioning government. The risk of civil unrest is growing, and with it, the accompanying risk of military intervention. The heightened possibility of a coup is reflected in the downgrading of Thailand's political risk rating...

"If the parliament does indeed elect a prime minister the PAD does not approve of, the same cycle of protests and deadlock will start again. In that case, a military coup seems almost inevitable, particularly as civilian-military relations remain extremely weak. In any case, it appears increasingly likely that the elite will win out over the rural majority."

STANDARD & POOR'S