KBRA Releases Research – 2020 Sovereigns Outlook: A Story of Politics and Liquidity

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases its 2020 Sovereigns Outlook. KBRA’s sovereign coverage enters the new year with the vast majority of ratings having Stable Outlooks going into a cycle likely to be characterized by heightened geopolitical and domestic political risk as well as strong liquidity. KBRA maintains a portfolio of 10 sovereign ratings, although our global expansion requires macro views on many countries worldwide. This sector outlook summarizes the key macro themes that we expect to characterize the global political economy in 2020, and highlights KBRA’s perspectives on its rated sovereigns going into the new year.

The main takeaways in this report are:

  • The year 2020 is likely to be characterized by persistent global trade tensions, abundant global liquidity, sound but slowing global growth, and heightened domestic political risks.
  • Domestic currency leverage buildup in emerging markets, as well as synchronized reduction in interest rates worldwide, are likely to contribute to longer term credit risks emanating from local currency debt markets.
  • Idiosyncratic factors are equally if not more important than global macro factors in determining sovereign risk.
  • KBRA’s portfolio of rated sovereigns are on Stable Outlook except for Portugal (Positive Outlook) and the United Kingdom (Negative Outlook).

To view the report, click here.

Related Publications: (available at www.kbra.com)

CONNECT WITH KBRA

Twitter
LinkedIn
YouTube

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:
Joan Feldbaum-Vidra, Managing Director
+1 (646) 731-2362
jfeldbaumvidra@kbra.com

Alan Madden, Director
+353 (1) 588-1230
amadden@kbra.com

Business Development:
Mauricio Noé, Senior Managing Director, Head of Europe
+44 (0) 777 193 6570
mnoe@kbra.com

Contacts

Analytical:
Joan Feldbaum-Vidra, Managing Director
+1 (646) 731-2362
jfeldbaumvidra@kbra.com

Alan Madden, Director
+353 (1) 588-1230
amadden@kbra.com

Business Development:
Mauricio Noé, Senior Managing Director, Head of Europe
+44 (0) 777 193 6570
mnoe@kbra.com