S&P retains stable outlook for Thailand despite political chaos

[webfact]

S&P retains stable outlook for Thailand despite political chaos

BANGKOK, 4 January 2014 (NNT) – Leading credit rating agency Standard & Poor’s (S&P) is maintaining Thailand’s credit standing at stable while deeming political uncertainty as a negative factor that needs close monitoring.

Based on a report by the Public Debt Management Office, S&P has given Thailand ratings of BBB+ and A-2 for its long-term and short-term foreign currency bonds respectively while local currency ratings are at A- for long-term bonds and A-2 for short-term. The country’s credit outlook is also kept at stable, and the long- and short-term ASEAN regional scale ratings are standing at axAA and axA-1 respectively.

S&P indicated that Thailand’s public debt was still relatively low despite the debt burdens incurred by the government’s various stimulus programs. The public debt is projected to account for 26% of the GDP in the next three years.

Nonetheless, S&P voiced concerns over uncertainty in Thai politics, saying it had been the greatest impediment to the country’s credit standing over the past 2-3 years. The agency admitted that the issue would play a vital role in its decision in the future whether or not to lower Thailand’s rating.


-- NNT 2014-01-04

[Ricardo]

"The public debt is projected to account for 26% of the GDP in the next three years"

Which explains why PTP really needs the flood-control & infrastructure-spending loans, there's little else behind the economy, except borrow-and-spend ?

Yay for Red Economic-Management !

[Prbkk]

This is good news. Many countries have had major downgrades. I hate to think what the agencies would do in the event that Suthep's committee of "good people" stole power

[GAZZPA]

This is good news. Many countries have had major downgrades. I hate to think what the agencies would do in the event that Suthep's committee of "good people" stole power

you're right, this is good news for Thailand. but it needs to sort out it's political instability or this good news could quickly become bad news.

[Ulic]

Not sue I understand I thought Thailand's debt was already 44% of GDP.

Where does the 26% come from? Is this the amount to be added to the

44% to total 70% ? Not being a smart ass I really don't understand.

[midas]

Huh ! These people have got as much credibility as used-car salesmen

[marcusd]

"The public debt is projected to account for 26% of the GDP in the next three years"

Which explains why PTP really needs the flood-control & infrastructure-spending loans, there's little else behind the economy, except borrow-and-spend ?

Yay for Red Economic-Management !

Well I failed economics at University but in my first year out I owned a Mercedes sports 380 SL and my Lecturer at uni drobe a Toyota corolla In Australia.

So I am looking at these figures and I see this.

26% of GDP as DEBT... Means there is still a hell of a lot more they can borrow to do anything they want.

Power corrupts UNBELIEVABLKE so much here.

"UMMMM We can bollow some more BAHTS and laise debt levels to 50% so that means we can get some more BILLIONS and blibe reds in thai Isan area and den we can glet more bahts when we lin office agin and bollow some more bahts and laise debts to 100% and den say Solly no can repay oops.

And den we can leave on new Thai Plane (mine) and den we can blane new Democlats who make Thialand so bad OOOOHHHH"

[marcusd]

This is good news. Many countries have had major downgrades. I hate to think what the agencies would do in the event that Suthep's committee of "good people" stole power

Or S & P actually saw REAL figures for the stolen generations of money in the water, rice and other hiddewn budgets?

[Halion]

This is good news. Many countries have had major downgrades. I hate to think what the agencies would do in the event that Suthep's committee of "good people" stole power

Do you have any idea of what you are talking about. The current status is as a result of the PTP's mismanagement and there is little correlation in regard to "many countries have had major downgrades". The movement on the index is simply the effect, the cause is the Government. Wwhat happens in other corners of the world is totally irrelevant.

[mca]

They'll need to improve on the quality of their sandwiches then.

[fish fingers]

I still don't understand how thailand has relatively cheap electricity etc..

[fish fingers]

this might explain why the baht rallied slightly against Sterling (0.3 up). I don't expect it to be like that mid week...

[DrTuner]

SNAFU

[Prbkk]

This is good news. Many countries have had major downgrades. I hate to think what the agencies would do in the event that Suthep's committee of "good people" stole power

Do you have any idea of what you are talking about. The current status is as a result of the PTP's mismanagement and there is little correlation in regard to "many countries have had major downgrades". The movement on the index is simply the effect, the cause is the Government. Wwhat happens in other corners of the world is totally irrelevant.

It's pretty evident that you don't have even the vaguest clue what you are talking about. That comes as little surprise to me having read some of the mindless crap you you've posted before. There is a direct correlation between the ratings and the cost of borrowing (notwithstanding the legitimate concerns about the quality of the ranking systems). If you don't understand that , perhaps stick with the crappy, half-baked political nonsense in your usual posts. That still counts as opinion but in respect of financial and economic matters , you don't know sh*t from clay

[Mudcrab]

Why is the national debt something to be proud about? Getting out of debt should be the priority.

[Mudcrab]

6 years ago my home country, Australia, had zero debt and enough money in the bank to pay for the multi billion pension payments of the forthcoming public servants who will retire from the workforce in the next few years.Now it has close to half a trillion dollars debt. It could borrow money if needed at very low interest rates with no issues. Now it's rapidly become a second world economy and borrows at a much higher interest rate. This is due to the economic incompetence of a previous Government which acted in a similar style to what we see in Thailand today. Spend, spend and let someone else be responsible and pick up the pieces.

The ratings S&P use can be confusing. From what I have read BBB+ is what they call junk ratings as applied to shares, companies, bonds and Goverments

[Prbkk]

6 years ago my home country, Australia, had zero debt and enough money in the bank to pay for the multi billion pension payments of the forthcoming public servants who will retire from the workforce in the next few years.Now it has close to half a trillion dollars debt. It could borrow money if needed at very low interest rates with no issues. Now it's rapidly become a second world economy and borrows at a much higher interest rate. This is due to the economic incompetence of a previous Government which acted in a similar style to what we see in Thailand today. Spend, spend and let someone else be responsible and pick up the pieces.

The ratings S&P use can be confusing. From what I have read BBB+ is what they call junk ratings as applied to shares, companies, bonds and Goverments

I don't disagree with some of that , but you are not correct about the cost of borrowing. Australia is one of only 8 countries in the world with AAA rating ( for now). If it loses that rating the cost oh borrowing Might go up

[timewilltell]

S&P = Smoke & Promises - and their "opinion" means Jack to anyone with a brain. Just another corporation with self interest at heart. Economically Thailand is a land mine right now - let's hope no one steps on it but I am not offering odds of BBB+ Or anything near - the chances in the near term are evens or worse which in my school would be CCC