Moody's maintains Thailand's credit rating Confident that fiscal stability will remain strong.
"Moody's" maintains Thailand's credit rating at Baa1, expecting the Thai economy to grow 3% in 2567-2568, confident that fiscal stability will remain strong. The government also has strong debt repayment ability.
Mrs. Jindarat Wiriyataweekul, Public Debt Consultant Spokesperson of the Public Debt Management Office (P.B.O.) Revealed that Moody's Investors Service Company (Moody's) has maintained Thailand's credit rating (Sovereign Credit Rating) at Baa1 or equivalent to BBB+ and maintained the outlook for Thailand's creditworthiness at a stable level (Stable Outlook). The important points are as follows:
1. Thailand is a large and diverse economy. It also has strong and effective macroeconomic policies. The Thai economy is expected to grow from 1.9% in 2566 to approximately 3% in 2567-2568 due to the continued recovery of the export and tourism sectors.
By the amount of foreign tourists It is expected to increase from 28 million people in 2566 to 35 million people in 2567 and will increase to 40 million people in 2568, which is the same level as before the 2019 coronavirus outbreak (Pre-pandemic). ) In this regard, the recovery of the tourism sector is sustainable. It will help stimulate private sector consumption and investment. and the growth of the Thai economy in the next period
In addition, government investment will increase. after that The Annual Budget Act is effective. In addition, the government sector has supported public and private investment. Especially in the Eastern Economic Corridor (EEC) and increasing participation in free trade agreements.
2. The public finance sector is still strong. Although the government continues to pursue a fiscal deficit policy, Moody's expects that in the medium term the government will be able to manage the public debt burden to a stable level. and will be able to return to cautious fiscal policy implementation. (Conservative Fiscal Policymaking)
In addition, the government has Strong Debt Affordability compared to countries with similar credit ratings (Peers) by being able to use a variety of domestic funding tools at low costs. In addition, most public debt is denominated in baht and has a long average time to maturity.
3. Important factors that Moody's will follow to analyze Thailand's credit rating. Including production potential (Productivity) Various reforms to increase the country's competitiveness. and managing the public debt burden in the medium term. as well as aiming towards fiscal balance (Fiscal Consolidation).
