Fitch Thailand: Fiscal status in Thailand remains strong

BANGKOK, September 15 (TNA) - Fitch Ratings (Thailand) Limited (Fitch Thailand) says that the fiscal and foreign debt status in Thailand remains strong, which should cushion the country from any new economic crisis. Andrew Fennell, Director of Asia Pacific Sovereigns at Fitch Ratings Inc., a leading international credit ratings firm, spoke of Thailand's status at this week's annual seminar of Fitch Thailand, in which more than 250 senior government officials, executives of private business and financial firms and investors participated. Fennell pointed out that the Thai economy should, thus, face a lower risk from impacts of any new, probably, economic crisis, when compared with other Asian economies. Fennell assessed that credit ratings of countries in Asia-Pacific this year should generally improve, thanks to the rebounding world economy with rising trade and more stable commodity prices. Fennell acknowledged that economic conditions of Asian countries look better than those in other global regions and three economies in Asia are likely to gain more positive credit ratings in 2017. Fennell cautioned, however, that a possible increase in the US key interest rate in the near future, a slowdown in the immense Chinese economy and a possibility of rising trade protectionist measures remain risk factors of economic conditions of countries in Asia and the Pacific. Participants in the seminar viewed that the Thai economy alone has been recovering so far this year, but Thailand's economic growth in the middle term faces such challenges as a high level of household debts and negative impacts from a higher proportion of the elderly population. Besides, operational performances of Thai commercial banks are likely to remain in the red domain although their lending prospect, quality of assets and profits are expected to be growing next year. Jonathan Cornish, chief of credit ratings of financial institutes at Fitch Asia-Pacific, saw, meanwhile, that risk factors remain for commercial banks in Asia and the Pacific but in a declining level, when compared with those in early this year, thanks to more stable commodity prices and generally-sound macro-economic conditions in the region. (TNA)