Fitch lifts Thai credit rating
- Published: 8/03/2013 at 08:10 PM
- Online news:
Fitch Ratings has raised its credit rating on Thailand, citing a resilient economy and a more stable political environment.
The country's long-term foreign currency-denominated debt was raised one level to BBB+ from BBB, Fitch said in a statement on Friday.
The new rating is in line with the ratings assigned by the two larger US-based ratings agencies, Standard & Poor's and Moody's Investors Service. The outlook on the rating is stable.
"Fitch has revised its assessment of the risks to policy predictability and the investment environment from political and social tensions," the agency said in a statement.
"The investment rate has accelerated in recent years. The government led by Yingluck Shinawatra has consolidated its position and has faced no serious extra-legal challenges since its election in July 2011."
The government last year raised minimum wages and introduced incentives for car buyers and rice farmers to spur domestic demand and counter falling exports. Economic growth surged in the fourth quarter after a slump in the corresponding period in 2011 when the worst floods in almost 70 years caused severe economic disruption.
The rating upgrade will benefit the country and allow it to borrow at cheaper rates, Ms Yingluck told reporters.
Fitch restored its credit rating on Thailand after a 2009 downgrade following street protests.
In its latst upgrade, it also cited the country's strong external position and low government debts. Fitch expects Thai public debt to remain below 50% of gross domestic product even after heavy planned infrastructure spending.
About the author
Writer: Bloomberg News