Paopoom reaffirms Thailand’s stable outlook with credit rating agencies
Paopoom reassures global rating agencies of Thailand’s stable outlook, citing strong reserves, fiscal discipline, and gradual economic recovery.
Deputy Finance Minister Paopoom Rojanasakul on Thursday reaffirmed Thailand’s stable credit outlook in meetings with three major international credit rating agencies.
Speaking from Washington, D.C., where he is attending the 2025 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) from 21 to 26 April, Paopoom said he had met representatives from JP Morgan, Moody’s, and S&P Global Ratings.
Gradual Economic Recovery and Government Preparedness
Paopoom told the rating agencies that Thailand is undergoing a gradual economic recovery, with positive signals across multiple sectors. He acknowledged that while the economy had not yet fully rebounded, the government was actively implementing financial and fiscal policies to ensure continued stability.
He also noted that geopolitical tensions—particularly the ongoing effects of the trade war initiated by the former US administration under President Donald Trump—have impacted Thai exports and investment.
Inflation and Financial Institutions Under Control
Despite global challenges, Paopoom assured the agencies that Thailand continues to maintain macroeconomic stability. Inflation remains low, and the country’s financial institutions—including both state and commercial banks—are in strong condition.
He cited that Thai commercial banks currently maintain a Capital Adequacy Ratio (CAR), also known as the BIS ratio, of 20.12%, which reflects robust financial health. Furthermore, Thailand holds over USD 247 billion in foreign reserves, reinforcing its financial resilience.
Public Debt Management and Fiscal Discipline
Paopoom emphasised that Thailand manages its public debt with strict fiscal discipline. Over the past two years, public debt stood at 64.21% of GDP, a manageable level given the average borrowing cost of 2.82% and an average loan maturity of nine years and two months.
He also highlighted that foreign currency-denominated public debt is minimal, accounting for only 0.90% of GDP, and affirmed that the government has strong debt affordability.
Stable Outlook Expected from Credit Rating Agencies
Paopoom expressed confidence that the discussions would positively influence Thailand’s credit ratings. He anticipated:
- S&P to maintain a BBB+ sovereign rating
- Moody’s to rate Thailand at Baa1
- All agencies to uphold a “stable outlook” and affirm Thailand’s investment-grade status
