S&P Global Ratings has affirmed Thailand’s long-term foreign currency sovereign credit rating at ‘BBB+’ and the short-term rating at ‘A-2’, while maintaining the local currency ratings at ‘A-’ long-term and ‘A-2’ short-term.
The outlook on the long-term ratings remains ‘Stable,’ reflecting the agency’s views that Thailand will sustain economic growth broadly in line with peers over the next 12 to 24 months, supported by moderate government fiscal measures.
Meanwhile, S&P noted that persistent weakness in economic performance could result in a downgrade. Conversely, the ratings could be raised if Thailand achieves greater political stability and reduces the likelihood of abrupt political changes.
Thailand’s strong external balance sheet, moderate government debt levels, and consistent track record of stable macroeconomic management were highlighted as supporting factors for its rating, though these are moderated by lower per-capita income and longstanding political uncertainties.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas stated that the affirmation reflects confidence in Thailand’s robust external liquidity, high international reserves, low levels of external debt, and a stable banking system.
He added that the government continues to implement the Medium-Term Fiscal Framework (MTFF), built around three main pillars: a clear fiscal management approach on revenue, expenditures, and debt; enhanced fiscal rules with greater transparency around costs and tax incentive losses to strengthen fiscal discipline; and improved oversight of quasi-fiscal measures under Section 28 of the State Fiscal and Financial Disciplines Act.
These measures are intended to underpin both investor and public confidence in Thailand’s economic foundation and support sustainable long-term growth.
