Property, trading pose high credit risk

The Bank of Thailand has expressed concern over rising credit risks among some large corporations with high debt-to-equity (D/E) ratios, particularly in the property and trading sectors.

- SOMRUEDI BANCHONGDUANG

According to the central bank’s Financial Stability Report 2025 released yesterday, a number of highly-leveraged large corporations (HLLCs) display increasing financial fragility due to their rising D/E ratios.

The sectors facing the greatest risk include property development and trading businesses.

The financial vulnerability of some property developers was driven by sluggish sales growth amid weak purchasing power and the slower pace of Thailand’s economic expansion.

Meanwhile, several trading businesses have come under pressure from declining revenues resulting from weaker exports and subdued domestic consumption, collectively weakening the financial position of firms in these sectors.