(30 August 2004 – Thailand) Ratings agency Standard & Poor’s has upgraded Thailand’s long-term foreign currency credit rating from “BBB” to “BBB+”.The upgrade means Thailand has the same rating as China but is behind South Korea and Malaysia.
“The upgrade reflects Thailand’s strong external liquidity and public sector net external creditor standing,” S&P said.
However, it warned that Thailand had to pick up the pace of its structural reform.
The Thai government responded to the announcement by saying it would issue bonds and do road shows to encourage foreign investment into Thailand. It plans to issue euro commercial paper worth US$500 million to refinance World Bank loans by the end of October.
S&P said Thailand’s foreign exchange reserves were forecast to reach US$42 billion by the end of 2004.
Prime Minister Thaksin Shinawatra said the upgrade showed the Thai economy was improving.