Bangkok – The Ministry of Finance on Friday reported the latest Fitch ratings from stable to a positive outlook regarding the Thai government’s credibility and a rating of BBB+ on the issuance of long-term bonds in foreign currencies and the baht. Short-term bonds in both foreign currencies and the baht were rated F1 with the Country Ceiling at A-.
Fitch has demonstrated more confidence in Thailand as the political risk factor is believed not to affect the country’s handling of macroeconomics. Besides, Thailand’s external finances and public finances have improved over recent years, thus keeping the country from reacting too sensitively to economic and financial uncertainties. The critical political issue has been resolved with the setting up of an elected government, though political uncertainties will depend on the stability of the coalition in power.
However, Fitch will continue to monitor major issues which might affect Thailand’s credibility such as the overall level of household debt, the advent of an increasingly elderly society and the development of human resources.