Who still listens to credit ratings?

S&P’s senior director of sovereign ratings Tan Kim Eng said on Thursday that S&P’s decision  as based on the fact that Thailand is at risk of having a problem of high public debt in the future, even though it has strong economic fundamentals.

Regardless, Thailand maintained its BBB+ rating by S&P for 2013, I was expecting for Thailand’s credit rating to actually improve given that the country hasn’t had any political issues for a while, the economy has proven to be strong despite all the issues over the past 10 years (tsunami, bird flu, pig flu, riots, coup’s etc etc), the debt-to-GDP ratio is still low versus the rest of the world, I believe it really should just be a matter of time before Thailand gets upgraded to an A- and then watch the increased fund flow into the capital markets and the Thai Baht continuing to get stronger.

Source: Bangkok Post