The return of an elected government that is more responsive to public opinion supports political stability, in our view. We are revising our outlook on Thailand to positive from stable. We are affirming our 'BBB+/A-2' foreign currency and 'A-/A-2' local currency sovereign credit ratings on Thailand. Thailand's open economy is facing significant headwinds at the moment due to weak external demand and a strong currency. This is offset by Thailand's generally robust external and fiscal metrics, which have led to low government debt. The positive outlook also reflects our expectation that economic growth will recover modestly, supported by easing of global trade tensions, and that the fiscal deficit will increase only moderately with higher spending on social transfers and infrastructure.
