S&P, Fitch Say Thailand Must Sustain Growth to Avoid Ratings Cut
- Srettha aims to grow economy 5% on the average during his term
- Rating companies flag widening fiscal deficit as main risk
Thailand is rated BBB+ at S&P, two notches above the lowest investment grade that it has retained since 2004.
Photographer: Andre Malerba/BloombergThailand’s plan to jumpstart its $500 billion economy with a mix of cash handouts and loan moratoriums carries a credit downgrade risk amid a growing reliance on debt and doubts about the nation’s ability to sustain growth, according to ratings companies.
Prime Minister Srettha Thavisin plans to lift government borrowing by about 8% to 2.43 trillion baht ($66 billion) in the fiscal year from Oct. 1 as he boosts spending that includes a signature 560 billion baht cash handout to all adult Thais. He also needs to find revenue for a debt moratorium for farmers and to subsidize electricity and fuel prices.
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S&P, Fitch Say Thailand Must Sustain Growth to Avoid Ratings Cut