ID :
193527
Thu, 07/07/2011 - 14:41
Auther :
Shortlink :
http://m.oananews.org//node/193527
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Peaceful election boosts Thailand’s credit rating
BANGKOK, July 7 (TNA) - Fitch Ratings views the peaceful election in Thailand as a positive factor to boost its credit rating.
Vincent Milton, managing director of Fitch Ratings (Thailand) Co, said the smooth election in Thailand last Sunday reduced the political risks that had affected the credit rating of Thailand since 2006 and caused the lowered credit rating of the country in April 2009.
He said if political risks significantly declined and there was not any serious external economic factor, confidence in consumption and businesses would recover steadily, which would lead to a growth in investment and a medium-term economic growth.
Milton noted that strong financial and industrial sectors, the good financial health of the government and the low level of debts in foreign currencies would boost the credit rating of Thailand from BBB+ and the credit rating for its long-term baht-denominated bonds from A-.
However, he said, Fitch Ratings would examine details of the economic and financial policies of the new government and see if they would increase inflation and the ratio of public debts to the gross domestic product.
Fitch Ratings would also wait and see if the new government could end political conflicts, he added.
Milton said that remaining risk factors affecting the Thai economy were political stability, the public debts, inflation rate and foreign exchange rates.
Furthermore, Fitch Ratings commented that Thai financial institutions remained strong but still carried medium-term risks due to the prevalence of lending to corporate debtors and higher financial costs. Strong provisions and profits of commercial banks as well as strict measures of the Bank of Thailand, however, helped reduce the risks of commercial banks. (TNA)
Vincent Milton, managing director of Fitch Ratings (Thailand) Co, said the smooth election in Thailand last Sunday reduced the political risks that had affected the credit rating of Thailand since 2006 and caused the lowered credit rating of the country in April 2009.
He said if political risks significantly declined and there was not any serious external economic factor, confidence in consumption and businesses would recover steadily, which would lead to a growth in investment and a medium-term economic growth.
Milton noted that strong financial and industrial sectors, the good financial health of the government and the low level of debts in foreign currencies would boost the credit rating of Thailand from BBB+ and the credit rating for its long-term baht-denominated bonds from A-.
However, he said, Fitch Ratings would examine details of the economic and financial policies of the new government and see if they would increase inflation and the ratio of public debts to the gross domestic product.
Fitch Ratings would also wait and see if the new government could end political conflicts, he added.
Milton said that remaining risk factors affecting the Thai economy were political stability, the public debts, inflation rate and foreign exchange rates.
Furthermore, Fitch Ratings commented that Thai financial institutions remained strong but still carried medium-term risks due to the prevalence of lending to corporate debtors and higher financial costs. Strong provisions and profits of commercial banks as well as strict measures of the Bank of Thailand, however, helped reduce the risks of commercial banks. (TNA)
