Fitch Ratings has affirmed Thailand’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB+’ with a Stable Outlook.
Key rating drivers
Thailand’s ratings are supported by robust external and public finances, which continue to provide buffers against downside risks amid a prolonged economic recovery from the coronavirus pandemic.
These strengths are balanced against weaker structural features relative to ‘BBB’ range peers, including lower World Bank governance scores and per capita income, and weaker medium-term growth prospects based in part on population ageing.
The affirmation with a Stable Outlook reflects Fitch’s assessment that the rise in government debt associated with the fiscal response to the pandemic can be contained over the medium term, based on the strengths of the fiscal framework and Thailand’s record in managing its public finances.
