Fears over sovereign rating revision

Bankers worry about possible downgrade

- SOMRUEDI BANCHONGDUANG

Bankers are increasingly concerned about a potential downgrade of the country’s sovereign credit rating in the near future due to weakening tax revenues and rising public debt.

According to Piti Tantakasem, chief executive of TMBThanachart Bank, Thailand faces growing risk of a credit rating downgrade as tax revenues continue to fall short of government targets, while public debt shows signs of increasing.

“Although the current public debt-to-GDP ratio is not yet alarming and remains below the ceiling, a slower pace of GDP growth combined with rising debt could accelerate the ratio in the period ahead,” he said.

According to the Public Debt Management Office, the public debt-to-GDP ratio tallied 63.2% at the end of July 2025, compared with 63.9% in 2024, 64.3% in 2023 and 63.8% in 2022.