BANGKOK, Thailand (Reuters) -- U.S. ratings agency Moody's Investors Service has raised Thailand's foreign currency ratings, citing resilient exports and firm prospects for continued growth in one of Asia's fastest-growing economies.

The ratings agency said in a statement Wednesday it raised the rating for Thailand's long-term foreign currency bonds and foreign currency country ceiling to Baa1 from Baa3.

Moody's also raised the ceiling for foreign currency bank deposits to Baa1 from Ba1 and the foreign currency ceilings for short-term notes and deposits to Prime-2 from Not-Prime.

The outlook on the foreign currency ceilings and ratings remained stable, Moody's said.

The two-notch ratings upgrade, expected to boost investor confidence in the rapidly expanding economy, puts Thailand on the same level as neighboring Malaysia and only a notch below South Korea.

The increase also follows a one-notch ratings upgrade last month by rival agency Standard & Poor's.

Thailand is expected to grow at least six percent this year after posting 5.3 percent growth in 2002.

Economists said a Moody's upgrade had been long overdue.

"The reasons are obvious," said Joseph Tan, regional economist at Standard Chartered Bank in Singapore. "Thailand has a strong fiscal position, they have repaid the IMF loan early, growth is still very strong."

But the two-notch upgrade surprised some analysts.

Standard & Poor's last month gave Thailand a one-notch lift, putting its foreign currency ratings at BBB long-term and A-2 short-term. Domestic currency ratings rose to A and A-1.

Besides strong exports and promising prospects for continued strong growth and stability, Thailand had also bolstered its external payments position and cut its external debt drastically, Moody's said.

Thailand has seen its external debt drop to around 40 percent of GDP this year from 59 percent in 2001, according to Merrill Lynch Phatra.

But Moody's also flagged the persistence of relatively high debt and contingent liabilities and said the sustainability of Thailand's economic growth depended largely on bolstering external competitiveness further.

--CNN 2003-11-26

Overall a fair report in only 6 years since the economic catastrophe of 1997. Not all down to TRT...mostly Chuan's Government. WELL DONE MUANG THAI