Fitch seeking fresh data on Kingdom

Fitch Ratings (Thailand) has approached the Finance Ministry for economic figures, a move that could lead to a sovereign rating review to reflect the Kingdom's prolonged political uncertainty.

Chakkrit Parapuntakul, deputy director-general of the Public Debt Management Office, said the compilation of new data followed the rising political tension, which affected tourism revenue as well as investment sentiment. This could lead to the country's ability to finance debts, he said.

Fitch has maintained Thailand's sovereign rating at "BBB+" since the September 2006 coup.

Chakkrit noted that political conflict alone would not affect the ratings, which are mainly based on the ability to pay, though they could have indirect impacts on investment, tourism and incoming revenue.

Still, Thailand has huge foreign reserves on the back of robust export growth. Meanwhile, public debt has been as low as 37 per cent of gross domestic product, and even with the launch of mega-projects in the next three to four years, the ratio will not exceed 40 per cent.

"The recent hike in borrowing cost does not stem from the political conditions but from the credit crunch following the sub-prime crisis in the US," Chakkrit said.

Fitch said earlier this week that Thailand's rating was at risk as a result of the prolonged political crisis. The rating agency was originally scheduled to review the sovereign rating in the first quarter.