Fitch Ratings maintains Thailand’s rating of BBB+

[webfact]

Fitch Ratings maintains Thailand’s rating of BBB+

 

   

BANGKOK (NNT) - Although a substantial amount of budget is being used to combat the COVID-19 pandemic and help affected sectors, Thailand still has strong public and external finances to deal with economic fluctuations. Fitch Ratings, an international credit rating agency, has recently maintained the country’s rating of BBB+, with a stable credit profile.

 

According to Fitch Ratings, Thailand’s rating is supported by strong public and external finances, which have provided buffers to respond to the economic shock and market volatility associated with the COVID-19 situation.

 

The public finance sector remains strong, thanks to a record of prudent fiscal management, reinforced by the Fiscal Responsibility Act of 2018. The higher budget deficit, resulting from the continuity of the fiscal policy, will raise public debt in the short term, but the agency is optimistic that the Thai economy will be able to recover and grow moderately.

 

The Thai economy is projected to grow 3.8 percent in 2021, thanks to the government’s fiscal measures and efforts to assist those affected by the pandemic. The expenditure budget for fiscal 2021 has come into effect, and it will bolster confidence in the government’s spending efficiency amid the fragile economic environment.

 

Thailand’s external finances also remain strong, with a surplus in the current account and high foreign reserves.

 

However, Fitch Ratings has a negative outlook on the country’s household debt and political uncertainties, which may have adverse effects on the government’s performance, economic growth and social development in the medium term.

 

-- © Copyright NNT 2020-11-03

 

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[ChakaKhan]

The brown envelope is in its usual spot....kop khun krup

[Jack Mountain]

Since 2008 I very distrust rating Agencies. They judge a market in which they play a role in themselfs ... 

https://www.dw.com/en/credit-rating-agencies-under-a-harsh-spotlight-again/a-5524523

 

[sammieuk1]

Exact location of the high foreign reserves give or take 10cm is most likely Bern or Geneva not in the pockets of people that need it ????

[mfd101]

BBB+

 

Wow! The hub of B ratings.

[hotchilli]

6 hours ago, webfact said:

The higher budget deficit, resulting from the continuity of the fiscal policy, will raise public debt in the short term, but the agency is optimistic that the Thai economy will be able to recover and grow moderately.

Will wait and see about that.

[Baerboxer]

8 hours ago, ChakaKhan said:

The brown envelope is in its usual spot....kop khun krup

 

Are you suggesting Fitch receive bribes? Any evidence or perhaps a few Changs?

[BigStar]

8 hours ago, Jack Mountain said:

Since 2008 I very distrust rating Agencies. They judge a market in which they play a role in themselfs ... 

https://www.dw.com/en/credit-rating-agencies-under-a-harsh-spotlight-again/a-5524523

 

Ace TVF Financial Analysts have never trusted any ratings for Thailand unless they're in the FFF- category. That's cause the exchange rate against the GBPeso is so inconvenient for buying beer and paying barfines. Ironically if instead of posturing, sneering, and whinging they'd invested in the Thai market (since, say, 2008) they'd have quadrupled their money in baht and much more in Pesos, and then had no problem about the beer and barfines, not to mention all the rest.

[JimGant]

8 hours ago, webfact said:

The public finance sector remains strong, thanks to a record of prudent fiscal management, reinforced by the Fiscal Responsibility Act of 2018

What! Under the leadership of a coup general! How can that be -- I mean, the mobs in the street are demanding his resignation. Obviously, not for incompetence -- but then, for what, or whom? Who could do a better job, assuming that 'who' was electable? Does the mob just assume the democratic process, the Western, not Asian version, does a perfect job in anointing the right man? For me, I'll take the Singapore model.

 

Quote

However, Fitch Ratings has a negative outlook on the country’s ...political uncertainties, which may have adverse effects on the government’s performance

Yeah, the idealists in the street are still too young to assimilate all the variables in which to make a rationale decision. And being lead by professors who should know better. Ivory tower politics ain't what's needed at this critical (economically) juncture.

 

[Jack Mountain]

36 minutes ago, BigStar said:

Ace TVF Financial Analysts have never trusted any ratings for Thailand unless they're in the FFF- category. That's cause the exchange rate against the GBPeso is so inconvenient for buying beer and paying barfines. Ironically if instead of posturing, sneering, and whinging they'd invested in the Thai market (since, say, 2008) they'd have quadrupled their money in baht and much more in Pesos, and then had no problem about the beer and barfines, not to mention all the rest.

Fried Air Shares. That's what I mean ...

[ChakaKhan]

21 hours ago, Baerboxer said:

 

Are you suggesting Fitch receive bribes? Any evidence or perhaps a few Changs?

sangsom...nid noi.....