Yingluck said that the upgrade was the result of cooperation from all parties concerned and could strengthen Thailand’s credit ranking as a whole.
She added that the rating upgrade will benefit the country and allow it to borrow at cheaper rates.
The rating agency cited a strong economy, low government debt and a stable political situation as being three of the main reasons for the rating upgrade.
Fitch said in a statement on Friday that the rating agency has upgraded Thailand’s Long-Term Foreign Currency Issuer Default Rating (IDR) to ‘BBB+’ from ‘BBB’.
The Outlook is Stable. The Long-Term Local Currency IDR has been affirmed at ‘A-’ with a Stable Outlook. The Short-term Foreign Currency IDR is upgraded to ‘F2’ from ‘F3’. The Country Ceiling is upgraded to ‘A-’ from ‘BBB+’.
The new rating is in line with the ratings assigned by two larger US-based ratings agencies, Standard & Poor’s and Moody’s Investors Service.
According to the statement, Fitch said Thailand’s economy has been resilient to repeated shocks, including heavy flooding in the fourth quarter of 2011, underpinned by a flexible monetary and exchange-rate policy framework.
It said Fitch has revised its assessment of risks to policy predictability and the investment environment from political and social tensions.
The investment rate has accelerated in recent years. The government led by Yingluck Shinawatra has consolidated its position and faced no serious extra-legal challenges since its election in July 2011.