Fitch APAC Chart: Low Income, High Public Debt Weigh on Asia Frontier Sovereigns

HONG KONG--()--Link to Fitch Ratings' Report: APAC Sovereigns Chart of the Month - Feb 2016
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877447

Fitch Ratings says structural factors - including low per capita income, weak governance indicators, and high political risks - weigh on the ratings of Asia frontier sovereigns, even though they exhibit some of the strongest GDP growth rates globally in recent years.

Public debt across many of these countries has also increased since 2011, particularly in Mongolia and Vietnam. Commodity dependence is generally lower across Asia frontier sovereigns compared with peers in other regions, which in part reflects economic models focused on the export of garments and other labour-intensive manufactured goods.

Asia frontier sovereigns rated by Fitch include Bangladesh (BB-/Stable), Mongolia (B/Stable), Pakistan (B/Stable), Sri Lanka (BB-/Stable), and Vietnam (BB-/Stable).

The February edition of "Asia-Pacific Sovereigns Chart of the Month" is available at www.fitchratings.com or by clicking on the link in this media release.

Additional information is available on www.fitchratings.com

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Contacts

Fitch Ratings
Andrew Fennell, +852 2263 9925
Associate Director
Fitch (Hong Kong) Limited
19/F Man Yee Building
68 Des Voeux Road Central, Hong Kong
or
Andrew Colquhoun, +852 2263 9938
Head of Asia-Pacific Sovereigns
or
Media Relations, Hong Kong
Wai-Lun Wan, +852 2263 9935
wailun.wan@fitchratings.com

Contacts

Fitch Ratings
Andrew Fennell, +852 2263 9925
Associate Director
Fitch (Hong Kong) Limited
19/F Man Yee Building
68 Des Voeux Road Central, Hong Kong
or
Andrew Colquhoun, +852 2263 9938
Head of Asia-Pacific Sovereigns
or
Media Relations, Hong Kong
Wai-Lun Wan, +852 2263 9935
wailun.wan@fitchratings.com