HALISTER1: Political Risks Loom for Sovereigns in 2017, Fitch Ratings Says

Political Risks Loom for Sovereigns in 2017, Fitch Ratings Says

(Bloomberg) -- Elevated levels of political risk and uncertainty next year could hurt global sovereigns, Fitch Ratings says.
  • Trend away from conventional politics “reduces the predictability of policy direction in advanced countries in 2017”
  • Looser fiscal policy and greater trade protectionism also pose risk to creditworthiness among both advanced and EM economies
  • Overall outlook for sovereign ratings in 2017 remains stable but risks “clearly tilted to the downside”
  • Euroskepticism and populism could “affect European cohesion” in coming months, with any further significant political shocks potentially “hugely damaging for the European project”
NOTE: Italy Vote Risk May Rattle South-East Europe Bonds
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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