Fitch Issues Cautious Outlook for Thai Corporates in 2025

Thai corporates face a challenging earnings outlook in 2025, especially in the petrochemical and energy sectors, amid global demand weakness and rising operational costs, Fitch Ratings has warned.

The petrochemical industry remains the most vulnerable, with recovery unlikely before 2028. Despite these pressures, energy companies are sustaining profitability through low leverage and state-backed renewable energy initiatives.

Meanwhile, building materials benefit from infrastructure investment, and telecoms maintain strong cash flow. Fitch also noted increased investment in renewables and data centres as firms pivot to low-carbon models.

However, external challenges — including geopolitical tensions, oversupply, and low-cost Chinese imports — are likely to weigh on earnings and credit profiles. Negative ratings actions have already been taken across the sector over the past year.