Moody’s lifts Thailand’s credit outlook to stable from negative

Moody’s Ratings on Tuesday (April 21) announced that it had upgraded Thailand’s credit outlook to stable from negative.

At the same time, Moody’s affirmed Thailand’s sovereign credit rating at Baa1.

The upgrade to a stable outlook reflects Moody’s assessment that downside risks from a severe and prolonged shock linked to US tariff measures have eased after Washington lowered import tariffs on Thai exports to levels broadly in line with those applied to other countries in the region.

Although higher oil prices resulting from the conflict in the Middle East are expected to weigh on Thailand’s economic growth and add to the government’s debt burden, Moody’s said Thailand’s risk profile remains broadly in line with that of other countries with comparable credit ratings.

As a result, the agency expects Thailand’s economic growth and fiscal position to remain close to those of its peers.

The stable outlook also reflects Moody’s view that recovering investment momentum is helping to reduce the risk of a significant and sustained deterioration in Thailand’s long-term growth prospects.