Businessmen could no longer enjoy abnormal liquidity, he told a forum on Thailand’s corporate credit outlook held by Fitch Ratings Thailand. The credit cycle had already reached the mature stage, and the banking industry has raised its interest rate. With the overleveraging cycle, corporate equity will decrease in contrast with a higher debt-to-equity ratio. The country is now in a period of depression.The credit outlook is for more rating downgrades over the next months due to the combination of a tighter company financial situation and the stricter credit standards of banks in lending. “Besides the impact to credit rating, we do believe that the credit spread will be wider from the increase in the risk averseness of investors, who will pull out their investment from bad-performing companies,” he said.

Source: The Nation Bangkok July 19, 2017 18:11 UTC