S&P Reaffirms ‘BBB+/A-2’ Ratings on Thailand with ‘Stable’ Outlook

S&P Global Ratings reaffirmed Thailand’s ‘BBB+’ long-term and ‘A-2’ short-term foreign currency sovereign credit ratings on Wednesday with ‘A-‘ long-term and ‘A-2’ short-term local currency ratings on Thailand. The outlook on the long-term ratings remains stable.

The global credit rating agency expected Thailand’s economy to likely accelerate in 2024 following a slower-than-expected growth in 2023 amid an important political transition and the establishment of a new government.

S&P pointed out that it expected the change in net general government debt to average below 4% of GDP over 2024-2026, with fiscal settings normalizing from fiscal 2025 onward if the government moves forward with the THB 500 billion digital wallet scheme.

Additionally, the stable outlook on the long-term ratings reflects S&P’s view that Thailand will sustain its economic recovery over the next 1-2 years, and fiscal settings will stabilize following a large proposed fiscal stimulus in fiscal 2024.