BANGKOK (Reuters): Fitch Ratings revised Thailand's outlook to "stable" from "negative," - citing increased confidence that government debt will broadly stabilise over the medium term and that political conditions will improve following the general elections held earlier this year.
Here are the details from the report:
* The outlook revision reverses last year's downgrade warning, when concerns over rising debt and weak growth weighed on Thailand's credit profile.
* The country's economy has remained resilient despite higher energy costs and softer tourism demand following tensions in the Middle East, with technology and data-centre investment helping support growth.
* The rating action also comes after February's election which brought a smoother political transition, with Prime Minister Anutin Charnvirakul's coalition securing a working majority and easing concerns over policy uncertainty.
* Fitch said Thailand's strong external finances and its ability to fund most government debt domestically continue to underpin the investment-grade rating, despite elevated debt levels and modest long-term growth prospects.
* The move follows a similar action by Moody's in April, when it revised Thailand's outlook to stable, citing reduced downside risks from U.S. tariffs.
* The ratings agency also affirmed the country's 'BBB+' sovereign credit rating.
(Reporting by Atharva Singh in Bengaluru; Editing by Shailesh Kuber)
