Debt levels in Thailand's corporate sector remain relatively high due to large-scale investments and a business operating environment that remains weak, according to Fitch Ratings' Thailand Corporate Credit Outlook conference.
Obboon Thirachit, senior director of corporate ratings at Fitch Ratings (Thailand), said Thai corporates face a combination of pressures in 2026: a more challenging operating environment, elevated leverage accumulated over the past decade from large investments, and rising investment needs related to the climate transition.
The pressure is most pronounced in the petrochemicals, property and utilities sectors, while telecom remains strong.
The aggregated earnings before interest, tax, depreciation and amortisation net leverage for Thailand's 10 largest bond issuers was 3.7 times in 2025, significantly higher than 2 times for Fitch-rated companies in Thailand and across Asia-Pacific.
PTT Plc, rated BBB+ with a negative outlook and AAA(tha), had the lowest leverage of 1.8 times, while the other large issuers had leverage ranging from 4.1 times to 15 times.
The high leverage and heavy reliance on the domestic bond market could reduce financial flexibility and increase refinancing risk should market conditions tighten, noted Fitch.
In a panel discussion on investment, leverage and sustainability trends, featuring Ian Pascoe, chief executive and managing partner of Grant Thornton Thailand, Yunyong Thaicharoen, chief economist and chief sustainability officer at Siam Commercial Bank, and Candice Low, director of ratings & opinions at Sustainable Fitch, the panellists discussed the evolving outlook for sustainable finance.
Sustainable Fitch noted the global sustainable finance market is expected to remain resilient despite geopolitical headwinds. Asia-Pacific is No.2 after Europe in terms of issuance of green, social, sustainable and sustainability-linked bonds, accounting for 29% of issuance in 2025.
Ms Low also highlighted a growing need for financing climate change adaptation and resilience in the region, where climate-related physical risks are increasing in frequency and severity.
Vincent Milton, country head of Fitch Ratings (Thailand), said Fitch Thailand has contributed to the development of Thailand's debt capital markets by enhancing transparency, information disclosure, and improving financial discipline in line with international credit rating standards. However, leverage in Thailand's corporate sector has increased significantly over the past decade, he noted.
Enhancing transparency by requiring credit ratings from at least two rating agencies, regarded as best practice in most international debt markets, would likely strengthen market confidence and bolster investor trust, said Mr Milton.
