Latin American Sovereign Outlook: Credit Improvement to Slow in 2007.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has published its 'Latin American Sovereign Outlook' and will hold a teleconference on January 18th at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT with Fitch sovereign analysts who will discuss the agency's findings in detail. Contact Christopher Kimble for call-in details. In its semi-annual regional report, Fitch explores the likely impact of the current economic and political environment on the credit outlook for Latin American sovereigns this year. In addition, there is a special section that evaluates the potential for 'BB' category Latin American sovereigns to reach investment grade. An in depth discussion of this topic is available in a separate special report titled 'Can the 'BB' Latin American Sovereigns Achieve Investment Grade?' Both reports are available on the Fitch Ratings website at www.fitchratings.com, under 'Sovereigns' and 'Special Reports'. The report outlines Fitch's latest views on sovereign credit Sovereign credit is the credit of a sovereign country backed by the financial resources of that state. Sovereign credit is the opposite of sovereign debt. Fiat money is sovereign credit and sovereign bonds are sovereign debts. When money buys bonds, sovereign credit cancels sovereign debt. trends in the region and includes country commentary as well as updated aggregate economic projections through 2008. Though softening, external conditions remain generally favorable for the region, as commodity prices remain high by historical standards, global growth is still relatively robust and emerging market bond spreads have reached new historic lows. These factors should continue to underpin steady, albeit decelerating, GDP GDP (guanosine diphosphate): see guanine. and export growth across the region. However, electoral outcomes over the past 20 months, which in many cases resulted in electorates choosing a shift to the left, a weak mandate for the executive and/or a divided Congress, suggest that gradualism grad·u·al·ism n. 1. The belief in or the policy of advancing toward a goal by gradual, often slow stages. 2. Biology on key structural reforms that would ensure the sustainability of healthy medium-term growth prospects is likely to prevail. Furthermore, only three of the eighteen Latin American sovereigns that Fitch rates are on positive outlook now. With this as a backdrop, Fitch expects credit improvement to slow in 2007. In addition, the report explores constraints that are likely to hinder some of the higher rated speculative grade Latin American sovereigns from reaching investment grade status over the near term. Although these sovereigns each face challenging constraints to achieving this coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. designation, Fitch concludes that a more rapid fiscal consolidation than anticipated, further improvements in external solvency and liquidity ratios, progress on structural reforms that address fiscal weaknesses or improve investment climates, and/or greater integration with the global economy could offset these constraints. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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