Bangkok--5 Apr--Standard & Poor's
Credit risk among emerging market sovereigns continued to fall during the 12 months through Feb. 28, 2007. Among 35 emerging market sovereigns, 10 were upgraded, and only two were downgraded, according to "Credit Risk For Emerging Markets Sovereigns Falling For The Fifth Straight Year," published yesterday by Standard & Poor's Ratings Services.
"This is the fifth straight year in which upgrades of emerging market sovereigns are exceeding downgrades," says Standard & Poor's credit analyst John Chambers, chairman of the Sovereign Ratings committee. "The rate of upgrades, however, is lower than it was in 2004 and 2005.
"The upgrades spanned regions and rating categories between 'B' and 'BBB', with India crossing the investment/speculative grade divide on Jan. 30, 2007," Mr. Chambers continued. "We now rate two-fifths of emerging market sovereigns investment grade, the highest proportion in a decade. During the 12 months through February, no emerging market sovereign defaulted, and the three-year cumulative defaults rate remained below international norms." Despite a less-benign external environment, sovereign upgrades should continue to exceed downgrades in the near term, as positive outlooks on ratings of emerging market sovereigns outnumber negative outlooks seven to two, he added.
This article is part of a special report, "Beyond BRIC (Brazil, Russia, India, China)," published on RatingsDirect, the real-time, Web-based source for Standard & Poor's credit ratings, research, and risk analysis, and in the April 11, 2007, special issue of Standard & Poor's CreditWeek magazine, the global authority on credit quality. On April 12, Standard & Poor's credit and equity analysts along with outside experts will discuss "Beyond BRIC--Opportunities And Risks In Emerging Markets," a Standard & Poor's conference organized in cooperation with The Asia Society and the Americas Society/Council of the Americas. Standard & Poor's President Kathleen Corbet will open the conference in New York at the McGraw-Hill Building, 1221 Avenue of the Americas, and Chief Economist David Wyss will give an overview of the "Beyond BRIC" economies.
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com . If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected] . Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com ; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
David Wargin, New York (212) 438-1579
[email protected]
Analyst Contact:
John Chambers, CFA, New York (1) 212-438-7344
David Wargin, New York (1) 212-438-1579