Fitch Ratings affirms Thai economy - Thai banks are still struggling despite the overall recovery.
Fitch Ratings sees that even though the 60's economy has begun to move in a better direction. But the growth of Thai economy in the period.
Medium-sized firms still face the challenge of high-level kitchen liabilities. And the negative impact of
The proportion of elderly population increased. While the operating environment and operating results
Overall, the Thai banking sector is likely to remain negative even in the year 61. It is projected that the growth rate of Thai commercial banks will continue to be negative.
Credit quality, asset quality and profitability will improve.
Mr. Andrew Fannell, Director Fitch Ratings of Fitch Ratings
At the annual seminar of the company. Fitch Ratings (Thailand) said Thailand has a strong presence in the country.
The external debt and fiscal position, which are likely to support the impact of the economic crisis.
As a result, Thailand has a lower level of risk compared to other Asian countries.
In addition, the credit ratings of the 60 countries in the overall decline were negative. With the support of
The growth rate of the world economy improved. Increased international trade volume. And commodity prices
Reliable commodities. The economic conditions of the Asian countries are still in place.
A better level compared to other regions. Currently, there are 3 Asian countries with positive outlook.
However, the upward trend in interest rates in the United States. Economic slowdown
China and the prospects for a stronger trade policy. It is still a risk that may affect.
Impact on the economic situation in the Asia Pacific region.
In the banking sector, Jonathan Connick, head of credit rating agency for regional financial institutions,
Asia Pacific's Fitch Ratings said. The banking system in the region still faces negative factors, but the level of
The severity of negative factors has been diminished when compared with the beginning of the year 60. This is due to better Chinese economic growth this year.
The volatility of commodity prices is expected to decrease. And overall macroeconomic factors are at a good level.
However, the operating environment remains challenging both in the short and long term. By the banking system
In each of the Asian regions, they may be affected at an equivalent level, and some banks may be able to cope with it.
The risk factor or impact is better than other banks.
Mr. Buddhika Piyasena, Head of Fitch's Asia-Pacific Industrial Credit Ratings Group
Gaines said that new emerging markets countries in Asia must face the challenge of the US interest rate.
To rise This will cause each country to adjust monetary policy in a consistent manner and may result in costs.
Financial sector business sector upward.
In addition, the slowdown of China economy. This will affect the demand in the industrial sector to adapt.
Weakening and affecting the commodity markets. Also, defaults on corporate debt in China are likely to be.
It continues to happen. Because the Chinese authorities are trying to control the level of debt of the business sector.
Private and corporate sector related to local government. Including excess production control in the manufacturing sector.
In addition, the seminar was attended by senior executives from government agencies, investors and senior executives from the business sector.
Financiers attended more than 250 people and Mr. Pridi Starchai Managing Director Kasikorn Bank and President
Director, Thai Bankers Association Come on, talk to open the seminar.
Mr. Vincent Milton, Managing Director of Fitch Ratings (Thailand), welcomed the participants and
The debt market has experienced a relatively high growth rate over the past 6 years, with private debt (both
The financial sector and the industrial sector have grown to about 20% of mass production.
Total in Thailand (GDP) from about 10% in 2010, which is about the same proportion as China.
The increase in debt is mainly due to the acquisition or investment of large companies over time.
In addition, over the past 3 years, there has been a low or no credit rating.
From both Thai and foreign debt issuers from Laos. By the growth trend of the bond market.
Thailand in the future will depend on the level of growth of private sector investment. Including the issuer base expansion.
Debtors and investors continued.