Moodys maintains Thailand stable credit rating

BANGKOK (NNT) - Credit rating agency Moody’s has maintained Thailand’s credit rating at Baa1 with a stable outlook, in its annual credit analysis published yesterday, saying the government’s robust financial foundation allows the country to handle economic challenges.


The Public Debt Management Office (PDMO) has disclosed the credit rating released yesterday by Moody’s Investors Service (Moody’s), where the credit rating of the Thai government is maintained at Baa1 with stable outlook, the equivalent to BBB+.


Mrs Patricia Mongkhonvanit, Director General of the PDMO, said the credit rating agency considered the large and diverse economic activities in Thailand; the country’s agricultural base; the outstanding tourism sector; economic stimulation campaigns, and the government’s robust financial foundation as factors to help Thailand handle significant economic changes.


The credit agency expects investments in Thailand’s Eastern Economic Corridor (EEC) to help attract further private investment and domestic demand over the next 2-3 years, while large infrastructure investments will help increase the country’s competitiveness and manufacturing capacity, by attracting new businesses and modern technology.


With short-term economic impact expected from COVID-19, the agency expects the Thai economy to grow by 2% this year, and 5.8% next year, due to the recovery of the tourism sector and the long-term global economic recovery.


Moody’s latest report mentioned the robust public finance sector in Thailand due to careful and transparent management policy.


The report added that the average payback period of the government’s debt is 11 years. Short-term debt amounts to a low 8%, while the ratio of government debt in foreign currency is below 2%. The country’s ability to pay back loans is maintained at a high level.


The credit agency also mentioned that Thailand still sees a positive current account balance and high level of foreign exchange reserves. These factors can help support additional economic measures in the future, while keeping the inflation rate low and stable.


National News Bureau Of Thailand