Moody’s Investors Service (“Moody’s”) has today changed the outlook on the Government of Thailand’s issuer ratings to positive from stable and affirmed the Baa1 issuer and senior
unsecured ratings.

The decision to change the outlook to positive reflects Moody’s view that investment in physical and human capital, in the context of a lengthening track-record of a predictable and stable macroeconomic environment, may over time boost Thailand’s competitiveness.

Such developments could partially offset the drag on the country’s growth potential from gaps in human capital development and an ageing population.

The affirmation of Thailand’s Baa1 ratings reflects the country’s very strong public and external finances that provide Thailand significant room to counter shocks.

Thailand’s large and diverse economy also supports shock absorption capacity and the rating.

By contrast, the Baa1 rating also takes into account credit constraints from lingering, albeit easing, political risk and, longer-term structural challenges related to an ageing society and labour skills shortages that weigh on growth potential.

In addition, Moody’s has also affirmed Thailand’s local currency senior unsecured ratings at Baa1 and the foreign currency commercial paper rating at P-2. Concurrently, Moody’s has affirmed the local currency senior unsecured rating for the country’s central bank, the Bank of Thailand, at Baa1.

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