Frontier Markets Facing Downgrade Risks as Growth Slows: BBH
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Marc Chandler (Brown Brothers Harriman & Co)
Win Thin (Brown Brothers Harriman & Co)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283
(Bloomberg) -- Fundamentals for many frontier markets are worsening due to slow global growth and low commodity prices, Brown Brothers Harriman strategists including Marc Chandler and Win Thin write in a report.
- Negative outlooks are still hanging over many countries
- Ytd, rating actions have been 18 negative and 11 positive, a 62% share for negatives; ratio was 82% negative in 2016, 65% negative in 2015 and 64% negative in 2014
- In Asia, BBH sees Mongolia facing strong downgrade risks using its own model based on weighted compilation of 15 economic and political indicators such as external debt/GDP, short-term debt/reserves, import cover, current account/GDP, GDP growth and budget balance
- In Africa, Namibia’s Baa3/BBB- ratings may be lowered
- in Latam and Caribbean, there’s some upgrade potential for the Dominican Republic and Jamaica
- In Eastern Europe, Kazakhstan has “significant downgrade risks," while in the Middle East, Kuwait and Bahrain still have downgrade risks
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Marc Chandler (Brown Brothers Harriman & Co)
Win Thin (Brown Brothers Harriman & Co)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283