Half with the world’s top emerging market sovereigns now are rated below investment grade then year’s latest wave of downgrades, Standard and Poor’s said on Wednesday.
The credit agency said it was the first time since 2009 there had been a 50/50 split between ‘junk’ and ‘investment’ grades, reflecting cuts during Eighteen months for your likes of Brazil, Russia, South Africa and Saudi Arabia.
“The share with the top 20 emerging markets (EMs) sovereigns with investment-grade ratings (‘BBB-‘ or over) has declined to 50%, budget friendly point since 2009, after peaking at 60% between May 2013 and December 2014.” S&P said in the report.
Further downgrades may be about the cards.
The firm has negative outlooks on seven EM countries –Brazil, China, Colombia, Egypt, Lebanon, Poland, Russia, Africa, and Venezuela — while pair of –Indonesia and Pakistan– have positive outlooks.
A good or bad outlook means there is certainly least a one-in-three prospects for a rating improvements on the indicated direction.
