S&P warns of Thailand’s credit outlook

A worker in a Thai factory (Source:Reuters)

 The Standard and Poor’s Rating Services (S&P) warned that Thailand’s sovereign credit rating is facing a downturn, due to gloomy long-term economic prospects, on September 29.

According to S&P, the country’s credit metrics have been slowly deteriorating since 2006 due to domestic political uncertainties and the negative impacts of the political situation on the country’s long term growth prospects

S&P Senior Director of Sovereign and International Public Finance ratings in the Asia-Pacific Kimeng Tan said Thailand’s sovereign credit rating is stable within the level of a BBB+ in the short term. However, he stressed political risks, including delays in drafting a new constitution, are factors that seriously affect the country’s rating.

Thailand’s economy only grew 0.9 percent in 2014 due to a decline in exports and political instability.

On the same day, the Thailand Tourism Council (TTC) urged the country’s authorities to create more favourable conditions for tourists from ASEAN nations in a bid to increase the number of regional visitors to the country in 2016.

Chairman of the TTC Itthirit Kinglek said custom agencies and relevant authorities should improve administrative procedures and remove restrictions for holidaymakers from ASEAN country members, particularly when the ASEAN Economic Community (AEC) is to be formed at the end of this year.

Thailand expects to welcome six million tourists from AEC countries this year while about four million Thai nationals visit those countries in return.-VNA