Thailand Rating Raised by Fitch on Yingluck Stability
Source: Bloomberg News
Thailand’s credit rating was restored to BBB+ by Fitch Ratings four years after political turmoil prompted a cut, signaling confidence in Prime Minister Yingluck Shinawatra’s ability to maintain social stability.
The long-term foreign currency-denominated debt was raised one step by Fitch to three levels above junk on March 8, bringing the rating back in line with rankings by Standard & Poor’s and Moody’s Investors Service. The outlook is stable.
Yingluck has sought to avert political tensions since taking power in 2011 by shelving measures that would bring back Thaksin Shinawatra, her brother who was ousted as prime minister in a coup seven years ago. The upgrade comes as her government prepares a bill to spend 2 trillion baht ($67 billion) by 2020 on high-speed trains and mass-transit networks.
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Yingluck last year raised minimum wages and unveiled incentives for car buyers and rice farmers to boost domestic demand and counter falling exports. Economic growth surged last quarter after a slump in the corresponding period in 2011, when the worst floods in almost 70 years disrupted production for manufacturers from Western Digital Corp. (WDC) to Honda Motor Co.
Read more: http://www.bloomberg.com/news/2013-03-10/thailand-raised-by-fitch-on-yingluck-stability-southeast-asia.html
Increased wages and incentives to boost demand and boost exports leads to an upgrade in a country's credit rating.
Isn't that a radical notion?
