Fitch Ratings maintains Thailands 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.

National News Bureau Of Thailand