Bangkok--14 Feb--Standard & Poor's
According to a report published today by Standard & Poor's Ratings Services, if there's a single issue preoccupying policymakers of developed countries around the world today, it's how to balance budgets and repay debt without hurting their economies. Almost certainly, austerity measures would be good for sovereign credit quality and debt dynamics. However, if countries trim their spending so deeply or raise taxes too quickly that it stunts growth, the negative effects could be widespread, affecting the credit health of any company or household that's sensitive to broad economic downturns.
So, how should governments balance their budgets and cut their debt burdens without dampening economic growth? With sovereign debt and budgetary concerns dominating the headlines, we asked Standard & Poor's Chief Economist David Wyss, Managing Director John B. Chambers, Sovereign Ratings, and Managing Director Robin Prunty, U.S. Public Finance, for their views on what fiscal tightening might mean. The report, titled "Economic Growth And Credit Quality In An Age Of Austerity," is available on RatingsDirect.
The reports are available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase copies of these reports by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request copies of these reports by contacting the media representative provided.
Media Contacts:
David Wargin, New York (1) 212-438-1579,
[email protected]
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
David Wyss, New York (1) 212-438-4952
John Chambers, CFA, New York (1) 212-438-7344
Robin Prunty, New York (1) 212-438-2081