Sanctions Have Put Russia’s Debt Issuers at Risk of Downgrade

June 12, 2015 Share Print 0

Russia has the highest concentration of debt issuers at risk of downgrade of any emerging market country, according to ratings agency Standard and Poor’s (S&P).

Across developing countries in Asia, Eastern Europe, the Middle East, Africa and Latin America, Russia had the greatest concentration of entities – be they companies, state institutions or government — poised for downgrades, according to a research paper from S&P on Friday.

“Falling commodity prices and increased geopolitical concerns gave Russia the highest concentration of potential downgrades, at 27 issuers,” S&P said.

Countries and businesses across emerging markets that were at risk of downgrade were rated from AA-minus down to B-minus that had either negative rating outlooks or ratings on “CreditWatch” with negative implications.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.