S&P and Fitch say Thailand is donating money to stimulate the economy. Risk assessment reduced

Thailand’s plan to restart its $500 billion economy with a mix of cash handouts and loan moratoriums risks a credit downgrade amid a growing reliance on debt and doubts about the country’s ability to sustain growth, ratings firms said.

Prime Minister Srettha Thavisin plans to increase the national debt by about 8% to 2.43 trillion baht ($66 billion) in the fiscal year starting Oct. 1 by increasing spending, including a signature 560 billion baht in cash to all adult Thais. He also needs to raise revenue for a debt moratorium for farmers and subsidizing electricity and fuel prices.