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S&P Maintains Thailand’s Credit Rating at BBB+

Standard Poor's S&P Credit Rating Finance

Credit-rating agency Standard and Poor’s demonstrated its confidence in Thailand by keeping the country’s rating at BBB+ despite Covid-19 turmoil political turmoil, but has noted it is monitoring the situation.

Director of Public Debt Management at S&P Global Ratings Patricia Mongkolvanich revealed Thursday that the agency has maintained Thailand’s credit rating at BBB+ with a stable outlook due to the country’s fiscal strength and foreign-currency reserves, as well as low state debt.

It has assessed that current political problems will not weigh on the economy in the long term and that the administration is working effectively.

The agency is confident in Thailand’s finances, in spite of measures needed to respond to Covid-19, resulting in a deficit for 2020-2021 and hiking state debt.

S&P foresees the Thai economy recovering in the medium term and improving by 6.2 percent next year on the back of tourism and state investment. It also sees the Kingdom’s foreign reserves as stable.

Areas the agency is watching include economic growth and political stability, which may influence social and economic policies in the medium term.