A Chinese ratings firm has downgraded Thailand’s creditworthiness due to a series of damaging crime scandals denting the country’s appeal to tourists and the threat of US tariffs.
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The Beijing-based agency, China Chengxin International Credit Rating, said on Thursday that it had downgraded Thailand’s sovereign rating from A- to BBB+ after a string of high-profile “cross-border crime incidents”.
The lower grade means Thailand’s credit risk is now classified as “normal” rather than “low”, while its economic and financial positions are rated as “fine” instead of “strong”.
“Cross-border crime incidents have exposed the Thai government’s long-term deficiencies in crime governance,” said the ratings firm, in which Moody’s Ratings holds a minority stake.
“If the security crisis continues, it may have a negative impact on the prospects of the tourism industry and the confidence of foreign investors.”
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China was Thailand’s largest source of tourists last year, with about 6.7 million of its citizens visiting the country.