Fitch retains stable outlook for Thailand

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Thai flagRating agency Fitch has said it is maintaining its stable outlook for Thailand’s sovereign credit rating despite a slew of risks including a narrowing current account surplus, a widening fiscal deficit and high private-sector leverage.

Fitch’s Asia-Pacific head Andrew Colquhoun said several indicators were used to decide Thailand’s stable rating. He made his remarks on September 27 in Bangkok at Fitch’s 100th-anniversary conference entitled “Global Risks and the Outlook for Thailand”.

The country’s macroeconomy and external finances are in healthy shape, public finance is neutral and economic structure is weak, he said, naming naming high private debt and low GDP per capita as shortcomings.

Fitch raised Thailand’s score to BBB+ in March from the previous level of BBB. However, Thailand’s downside potential includes weak policy management and a relapse of social and political instability.

Fitch Ratings will continue to study the impact of government policies such as the rice pledging scheme and the 2-trillion-baht infrastructure plan as well as rising household debt spurred by the first-time car buyer scheme.

All in all, Thailand’s GDP growth outlook has weakened to 3.7 per cent for 2013 from 4.5 per cent previously.

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Reading Time: 1 minute

Rating agency Fitch has said it is maintaining its stable outlook for Thailand’s sovereign credit rating despite a slew of risks including a narrowing current account surplus, a widening fiscal deficit and high private-sector leverage.

Reading Time: 1 minute

Thai flagRating agency Fitch has said it is maintaining its stable outlook for Thailand’s sovereign credit rating despite a slew of risks including a narrowing current account surplus, a widening fiscal deficit and high private-sector leverage.

Fitch’s Asia-Pacific head Andrew Colquhoun said several indicators were used to decide Thailand’s stable rating. He made his remarks on September 27 in Bangkok at Fitch’s 100th-anniversary conference entitled “Global Risks and the Outlook for Thailand”.

The country’s macroeconomy and external finances are in healthy shape, public finance is neutral and economic structure is weak, he said, naming naming high private debt and low GDP per capita as shortcomings.

Fitch raised Thailand’s score to BBB+ in March from the previous level of BBB. However, Thailand’s downside potential includes weak policy management and a relapse of social and political instability.

Fitch Ratings will continue to study the impact of government policies such as the rice pledging scheme and the 2-trillion-baht infrastructure plan as well as rising household debt spurred by the first-time car buyer scheme.

All in all, Thailand’s GDP growth outlook has weakened to 3.7 per cent for 2013 from 4.5 per cent previously.

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