The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Emerging markets show credit quality boost

The positive economic noises emanating from the emerging markets have been confirmed this week in a report by S&Ps which shows a second consecutive quarter of improvements in corporate upgrades.

 

Ratings actions for corporate downgrades accounted for only 30% of the total number while 2003 saw five more upgrades than downgrades ? 62 over 57. These figures produced a downgrade ratio of 48%. Not since 1996 has such a low ratio been seen - positive signs indeed.

 

Investor risk aversion, according to S&Ps, has been the main driving force behind improved confidence and figures.

 

"Improved credit worthiness has been among the factors contributing to increased demand for emerging market securities in 2003," said Diane Vazza, head of the fixed income research group at S&Ps. "Other helpful factors include a higher appetite for risk among investors in a record, low-interest rate environment in addition to country specific domestic drivers."

 

The EMEA region, despite economic and political ructions in Russia, is looked upon most favourably by S&P ? Romania and Bulgaria particularly so ? though a negative bias still remains in Latin America and Asia.

 

The good news for these regions, however, is that the bias has fallen substantially in 2003, notably in Latin America, with just 17% of issuers listed with a negative bias, compared to 42% at year-end 2002.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree