Fitch retains stable outlook for Thailand

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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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. 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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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