S & P Keeps Thailand's B B B+ Rating Unchanged, Warns Of State Splurge

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S&P keeps Thailand’s BBB+ rating unchanged, warns of state splurge

By Digital Media

BANGKOK, Jan 24 – Rating agency Standard & Poor’s today maintained Thailand’s credit rating at BBB+, saying the country’s economic fundamentals are positive but political uncertainty continues to be a risk factor.

S&P credit analyst Kim Eng Tan said financial factors, particularly debt in the public sector, though stable in the short term, must be closely monitored as surging public debt will have a negative impact on the country’s credibility.

TRIS Rating president Santi Kiranand said the BBB+ rating for Thailand has remained unchanged for the last three years, below Singapore’s AAA rating and Malaysia's A- rating.

Two key risks involving political instability and natural disasters have been remedied but Thailand’s per capita income remains low – a significant criteria in S&P’s rating, he said.

He said the government’s investment in mega projects, the increase of daily minimum wage to Bt300, stimulus packages on consumption, public and private investments and export will boost Thailand’s gross domestic product and overall economy – positive factors that may contribute to a rating upgrade in the next few years.

“We have explained [to S&P] that the average income of Asian people [cannot be compared] to European and US populations. Their cultures and costs of living are different,” he said.

Though the country’s credit rating has not improved, investors are still keen on investing in Thailand’s stock market and bonds, consequently contributing to rapidly appreciating Thai baht, he concluded. (MCOT online news)

-- TNA 2013-01-24

[draftvader]

...and there I was thinking that a sweet baked goods store was getting in on credit analysis

[TheGhostWithin]

Love how it was stated that western and Thai incomes vs. cost of loving cannot be compared - many things in the foreign areas of Bangkok are now as expensive as in my home country, New Zealand. And yes, I live beside the fancy swank hotels and backpackers in the capital. They pay the same price I pay.

Property prices re skyrocketing, and the building standards do not compare to developed nations standards either.

Until you remove the corruption and huge gap between the 0.5% making insane amounts of money, and everyone else struggling to live, the majority will always want and expect less than the greedy upper grouping of Thai society.

You can fool a few farang to pay extra for sin sot by making us pity your poverty in comparison to our so called western riches but rating agencies simply speak a different language.

Edited January 25, 2013 by TheGhostWithin

[marcusd]

Yes... I am Australian. Mega rich by today standards but our wages are abut ten tunes more than the save job here.

Buy the cost is no where near one tenth. It is more.like one third or half so it is not cheap here at all.

I agree with you. Mr the ghostwithin.

[mccw]

Yes... I am Australian. Mega rich by today standards but our wages are abut ten tunes more than the save job here.

Buy the cost is no where near one tenth. It is more.like one third or half so it is not cheap here at all.

I agree with you. Mr the ghostwithin.

I have friends who are teachers in the UK (proper teachers not just TEFL) who have or are moving to Asia because although a lower headline total wage they calculate to be able to put a lot more money aside than back home due to the cheaper cost of living.

[mccw]

Standard of living for average Thai is way better than Uk low income.

[Naam]

Standard of living for average Thai is way better than Uk low income.

because Thais neither need to buy heating oil nor do they pay council tax