DBRS Morningstar Releases Commentary on the 2020 Global Outlook for Sovereigns

DBRS Morningstar released a commentary titled “Global Sovereigns – 2020 Outlook”.

The commentary discusses DBRS Morningstar’s view that the global outlook continues to present a challenging backdrop for sovereign ratings, although domestic policy efforts are also important.

Earlier optimism over Brexit and trade deals has been tempered by the rapid spread of the coronavirus, generating a high degree of uncertainty surrounding the near-term implications for China’s economy and the world. Furthermore, some of last year’s uncertainties and risks may resurface over the course of this year.

The outlook for sovereign ratings hinges partly on the evolution of global risks, but also on policy efforts to restore fiscal buffers and strengthen government balance sheets. Lower-rated European sovereigns have made considerable progress in reducing deficits and debt burdens, supported by the highly accommodative stance of the ECB. In the Americas and Asia, downward pressures are more prevalent, as policy discipline appears to be eroding in a few countries.

The commentary titled “Global Sovereigns – 2020 Outlook” is available at www.dbrs.com.

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