Thailand’s credit profile may be negatively impacted by political and fiscal uncertainty following the recent general election, according to Fitch Ratings. The official results of the election are still pending, but preliminary figures suggest that the opposition Move Forward Party (MFP) won the most seats in parliament. However, it is unclear whether MFP can form a coalition government with other parties, which could delay the formation of a new government and disrupt the budget implementation. Fitch expects this uncertainty to continue to weigh on Thailand’s credit profile, despite the country’s robust external finances and economic recovery. Fitch predicts that Thailand’s public finance metrics will remain broadly in line with other ‘BBB’ category sovereigns.
