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A
new report from the firm's chief rating officer for sovereign
ratings said a record nine of the top 20 developing economies
had negative outlooks on their ratings which meant they were
effectively on a downgrade warning.
"This is our heaviest ever negative bias on emerging market
sovereigns and why we expect downgrades will outpace upgrades in
the next year or two." S&P's Moritz Kraemer said.
Near-term risks not only included a likely gradual rise in U.S.
interest rates which could lure investors back to developed
markets, slower growth in China and dipping world trade, but
also more populist politics and a potential for geopolitical
conflicts.
"This is why our view of emerging markets' underlying credit
quality is less positive than the market view," Kraemer said.
(Reporting by Marc Jones; editing by Sujata Rao)
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