Fitch Revises Thailand's Credit Outlook to Stable, Confident Government Debt Will Hold Steady
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Fitch Ratings has revised Thailand's credit rating outlook from negative to stable, reflecting greater confidence that the ratio of public debt to gross domestic product can stabilise at a sustainable level over the medium term, even as the government increases spending in fiscal 2026 to cope with the energy crisis stemming from the war with Iran. Speaking at the agency's annual seminar held on September 30, 2026, Thomas Rookmaaker, head of the Asia-Pacific sovereign ratings group, said Fitch expects the global economy to expand 2.6% in 2026, a slight slowdown from 2.7% the previous year, with investment in artificial intelligence showing no sign of decelerating. Parson Singha, senior director of the financial institutions group at Fitch Ratings Thailand, said Thai banks have reduced their risk appetite by slowing loan growth and adjusting the structural mix of their loan portfolios, but asset quality risks remain relatively high, with non-performing loans tending to hold steady at elevated levels compared with other banks in the region. Capital strength and profitability, meanwhile, still help cushion downside risks to some extent.