STANDARD & POOR’S 2016 OUTLOOK: PARAGUAY STANDS OUT IN LATIN AMERICA
STANDARD & POOR’S 2016 outlook for Paraguay is very promising. Paraguay is the only Latin American country with a positive outlook for 2016, said Moritz Kraemer, Global Chief Rating Officer, Sovereign Ratings at Standard & Poor’s during his presentation of the firm’s 2016 global sovereign outlook.
Most countries in the region will continue to be affected by the slump in commodity prices and a slowdown of the Chinese economy, he added.
Not surprisingly, Brazil faces a bleak new year with President Dilma Rousseff facing impeachment and the economy in a recession.
Other countries with a less-than-optimist outlook are Venezuela and Trinidad and Tobago.
“With its non-investment grade, it’s plausible to assume that some of the portfolios under administration will have to divest over a certain period of time,” said Kraemer, adding that it’s usually a period of six months. “That of course creates additional pressure for funding”.
But other countries in the region, particularly Pacific Alliance members Chile, Mexico, Colombia and Peru, can expect a more stable outlook for the year. Those countries were able to use the ‘golden decade’ much better and increased their resilience by strengthening domestic capital markets, allowing them to secure capital funding. Although it doesn’t mean they are not under pressure, but they are more resilient to face the general negative scenario.
Part of an Article from Latam Trade You can read the full article there.
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