48 countries suffer credit downgrades following COVID-19

48 countries had their ratings cut by at least one credit ratings agency following COVID-19 outbreak.

Fitch is the most active with 45 downgrades, or 26% of the sovereigns it rates.

S&P is next with 37 cuts or 18% of its sovereign ratings.

Moody’s lowered 33, or 20% of the countries it assigns sovereign ratings to.

According to the International Monetary Fund, COVID-19 has seen debt in developed economies collectively surge 20 percentage points to 124% of GDP.

Across emerging markets it has gone up 9 percentage points to a record 61% and is expected to hit 70% of GDP.

Overall, poorer countries have borne the brunt of cuts.

Fitch delivered the most cuts in most places although S&P led in Sub-Saharan Africa where it cut half the countries it rates.

Both firms have said they expect downgrades to remain concentrated in emerging markets again this year.

Source: MyPublisher24.com

COVID-19Creditdowngrades