JCR maintains Thailand’s credit rating at ‘A-’
The Japan Credit Rating (JCR) Agency has maintained Thailand’s credit-rating ceiling at “A-” with a “stable” outlook, the Finance Ministry reported on Monday.
Patricia Mongkhonvanit, director-general of the ministry’s Public Debt Management Office (PDMO), said the rating remained stable despite the serious impact of Covid-19 on the Thai economy – especially exports and tourism. The rating for Thailand stayed level because the government had launched a THB1.9-trillion rescue package, boosting economic recovery since the second quarter of 2020, said Patricia.
JCR projects Thai GDP will recover from a 6-per-cent drop last year to grow 3 per cent this year.
The government has also resolved to run a budget deficit to support fiscal measures to boost recovery, resulting in a higher debt to GDP ratio. JCR said it remained confident that the government would be able to maintain fiscal stability and manage public debt at an appropriate level.
Meanwhile, JCR said Thailand’s banking sector remained stable while trade is strong with a current account surplus and high international reserves. As a result, Thailand still has capacity to take further measures to cope with any unexpected future situations, said the Japanese agency.
However, JCR said it was closely monitoring Thailand’s political uncertainty along with policy reform related to development of the high-tech manufacturing industry.