S&P warns emerging markets on debts and rates
The U.S.-based credit rating agency Standard & Poor's (S&P) said there are three great risks facing emerging economies which have achieved high growth rates as a result of the easing in global credit conditions and positive developments in commodity prices since 2008. In a report published on Tuesday, the rating agency identified the three risks as a decline in global liquidity that might follow the U.S. Federal Reserve's possible interest rate hike, a deceleration in the recent excessive growth of domestic loans, and a significant slowdown in China's economic growth. S&P chose Turkey as one of the most fragile countries in the face of these risks and also placed Venezuela, Argentina, Colombia and Peru on the list of most fragile countries. Mexico, the Philippines and Poland stood out as countries that faced minimum risk. The report underlined that Latin American countries are more fragile than Asian countries in the face of the three risks and stated that it monitored these risks in the credit scores that it determines for developing countries.
Last Update: September 29, 2015 21:13