Fitch Ratings Expects Improvement of Thai Corporates’ Credit Outlook

Paphamon Arayasukawat

BANGKOK (NNT) - The credit rating agency Fitch Ratings expects Thai corporates’ credit outlook to improve this year as vaccination is rolled out and economic activity recovers.

The agency said however, the pace of recovery for tourism would be slow amid prolonged travel and social distancing restrictions, adding that Thai banks would face restricted profitability for the next few years amid the sluggish recovery.

It also identified corporate sustainability as a trend that was shaping longer-term structural trends that will affect many of these sectors beyond the recovery.

Fitch said the outlook for the food retail sector in 2021 would remain stable as earnings rebound, while the outlook for the building material and power & utilities sectors to be stable in the coming years.