2016 will be a record year for sovereign rating downgrades
Saturday, 07 09 2016, Category: Economy, Country: World
The Fitch credit rating agency said that 2016 will be a record year for sovereign rating downgrades given more than 12 downgrades in the first half of the year. Moreover, there are 22 countries, which have been warned about a rating downgrade.
The oil and metal price decreases in the beginning of the year encouraged the downgrades of seven countries out of 10 countries, which rely heavily on commodities. Furthermore, Great Britain is one of the most recent country to have been downgraded after the British voted for the Brexit in order to leave the European Union.
Thus, the total number of downgrades was 15 noting that 2016 could exceed the number of downgrades experienced in 2011 when they reached 20 downgrades in the middle of the Euro zone crisis.
Source: Al Arabiya