Post by account_disabled on Jan 6, 2024 8:30:30 GMT
The Ministry of Finance would like to report the results of Thailand's credit rating by the credit rating company Fitch Ratings (Fitch). That on Friday, July 19, 2019, Fitch has revised its view on the government's creditworthiness in issuing currency-denominated debt instruments. foreign currency and the long-term baht from the level of "stable outlook" to "positive outlook" and maintain the government's credit rating in issuing long-term foreign currency and baht currency debt instruments. at the BBB+ level, short-term foreign currency and baht debt instruments at the F1 level, and the Country Ceiling at the A- level. (1) Thailand has received an adjustment in its outlook on reliability. This is mainly due to Fitch's increased confidence that current political risks will not affect macroeconomic management. This is reflected in the strength of the external finance sector and the public finance sector over the past several years. This makes the country less sensitive to economic and financial uncertainties.
While key political issues have been resolved following the establishment of an Industry Email List elected civilian government, a degree of political uncertainty remains, depending on the stability of the coalition government. ( 2) The strength of foreign finance. Thailand's national identity is a key strength to the country's credibility, reflected in the fact that the Thai baht is the strongest currency in the region against the US dollar. In 2019, the baht strengthened by more than 4.5 percent due to inflows. of capital and debt investment increased especially in June 2019 (3) Fitch expects that Thailand's foreign financial sector will remain strong. The current account balance to GDP will remain high compared to countries with the same credit rating (BBB group) at 5.6 percent in 2019 and 4.9 percent in 2020, supported by tourism and trade surplus Despite the slowdown in exports, Fitch estimates that the current account surplus combined with capital inflows will cause international reserves to increase from US$205.6 billion in 2018 to approximately US$216 billion. In 2019, in addition, the proportion of net foreign creditors to GDP at 43 percent in 2019 was higher than the median net debtor to GDP ratio of countries with the same credit rating (BBB group) at 100 percent.
7 According to Fitch's estimates, this is higher than the median net creditor ratio of countries with A credit ratings at 9.7 percent. (4) The government has strong fiscal management under the state's Fiscal Discipline Act. 2018 Fitch expects that the ratio of government debt to GDP (General Government Debt to GDP) will increase from 36.3 percent in fiscal year 2018 to 40.7 percent in fiscal year 2023 due to the government Accelerate investment in the country's infrastructure projects (5) Thailand's budget deficit is low when compared to countries with the same credit rating, with Fitch predicting that the general government deficit ) according to Government Finance Statistics (GFS) standards, from a surplus of 0.1 percent of GDP at the end of fiscal year 2018 to a deficit of 0.2 percent of GDP in 2019, while the consideration of the fiscal year 2020 budget will be delayed by 3 months. However, Fitch forecasts that the budget deficit will widen to 0.4 percent of GDP as the government allocates more money to low-income and infrastructure projects. The election helps resolve political uncertainty. politics and Help support the continuation of current policies. Fitch expects that continued implementation of the 20-year national strateg.
While key political issues have been resolved following the establishment of an Industry Email List elected civilian government, a degree of political uncertainty remains, depending on the stability of the coalition government. ( 2) The strength of foreign finance. Thailand's national identity is a key strength to the country's credibility, reflected in the fact that the Thai baht is the strongest currency in the region against the US dollar. In 2019, the baht strengthened by more than 4.5 percent due to inflows. of capital and debt investment increased especially in June 2019 (3) Fitch expects that Thailand's foreign financial sector will remain strong. The current account balance to GDP will remain high compared to countries with the same credit rating (BBB group) at 5.6 percent in 2019 and 4.9 percent in 2020, supported by tourism and trade surplus Despite the slowdown in exports, Fitch estimates that the current account surplus combined with capital inflows will cause international reserves to increase from US$205.6 billion in 2018 to approximately US$216 billion. In 2019, in addition, the proportion of net foreign creditors to GDP at 43 percent in 2019 was higher than the median net debtor to GDP ratio of countries with the same credit rating (BBB group) at 100 percent.
7 According to Fitch's estimates, this is higher than the median net creditor ratio of countries with A credit ratings at 9.7 percent. (4) The government has strong fiscal management under the state's Fiscal Discipline Act. 2018 Fitch expects that the ratio of government debt to GDP (General Government Debt to GDP) will increase from 36.3 percent in fiscal year 2018 to 40.7 percent in fiscal year 2023 due to the government Accelerate investment in the country's infrastructure projects (5) Thailand's budget deficit is low when compared to countries with the same credit rating, with Fitch predicting that the general government deficit ) according to Government Finance Statistics (GFS) standards, from a surplus of 0.1 percent of GDP at the end of fiscal year 2018 to a deficit of 0.2 percent of GDP in 2019, while the consideration of the fiscal year 2020 budget will be delayed by 3 months. However, Fitch forecasts that the budget deficit will widen to 0.4 percent of GDP as the government allocates more money to low-income and infrastructure projects. The election helps resolve political uncertainty. politics and Help support the continuation of current policies. Fitch expects that continued implementation of the 20-year national strateg.
