Thai firms on path to recovery after Covid-19 crisis: Fitch Ratings
Fitch Ratings, an international credit rating and research company, said many Thai firms are on the road to recovery this year.
Lertchai Korcharoenrattanakul, senior director of Fitch Ratings’ industries credits rating division, said at an online seminar last week that these firms were showing signs of recovery due to several factors.
He said the recovery could mainly be attributed to the cautious, step-by-step reopening of the country after the Covid-19 pandemic.
However, he said, hotel, aviation and retail businesses that have borne the brunt of the pandemic and restriction measures would take far longer to recover.
Also, he said, rising energy prices would continue adding pressure on the profits and growth of businesses that are not related to energy and electricity generating.
Lertchai said most Thai firms rated by Fitch have been cautious with their cash management and expansion. He said companies have borrowed more money to buy back shares or to buy shares in carbon-credit businesses, resulting in a high-debt ratio.
He added that negative ratings of many companies reduced and positive ratings rose in 2021.
