Fitch: No change in Thailand rating

Source: Bangkok Post, ThailandSept.文件倉 28--Fitch Ratings is maintaining its stable outlook for Thailand's sovereign credit rating despite a slew of risks including a narrowing current-account surplus, a widening fiscal deficit and high private-sector leverage.Asia-Pacific head Andrew Colquhoun said several indicators were used to decide Thailand's stable rating.He made his remarks yesterday in Bangkok at Fitch's 100th-anniversary conference entitled "Global Risks and the Outlook for Thailand".The country's macroeconomy and external finances are in healthy shape, public finance is neutral and economic structure is weak, he said, naming high private debt and low GDP per capita as shortcomings.The global credit rating agency raised Thailand's score to BBB+ in March from the previous level of BBB.The country's upside potential includes sustainable growth without the emergence of imbalance and quicker stabilisation of the public debt ratio than currently projected.Thailand's downside potential includes weak policy management and a relapse of social and political instability.Fitch Ratings will continue to study the impact of government policies such as the rice pledging scheme and the 2-trillion-baht infrastructure plan as well as rising household debt spurred by the first-time 存倉ar buyer scheme.While the rice pledging scheme was already factored into the rating upgrade in March, the agency will continue to monitor its losses.As for the massive infrastructure plan, Fitch Ratings will monitor its impact on the country's public debt, the time frame of projects and budget disbursement.Thailand's public debt stood at 44% of GDP at the end of May and is expected to remain below the 50% threshold.Mr Colquhoun said the resilience of Asia's emerging-market credit profile will depend on the credibility and consistency of macropolicy management.Thailand's sizeable external creditor position and moderate public debt serve as a buffer, and the economy has avoided the kind of volatility seen in Indonesia and India.Mark Young, the head of Asia-Pacific banks at Fitch Ratings Singapore, said the rapid increase in household debt since 2010 is a concern for Thailand's credit rating.The household-debt boom has been partly financed by state-owned banks and private savings cooperatives, which are more susceptible to credit losses than commercial banks since they serve more lower-income borrowers.Copyright: ___ (c)2013 the Bangkok Post (Bangkok, Thailand) Visit the Bangkok Post (Bangkok, Thailand) at .bangkokpost.com Distributed by MCT Information Services儲存