Fitch: Sovereign Ratings Drift Higher Despite Uneven Growth

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings says 2014 was characterized by uneven growth in the major advanced economies and persistent weakness among leading emerging markets. Improved growth in the U.S. and the UK stood in marked contrast to faltering expansion in the Eurozone. Therefore, 2014 sovereign rating activity was mixed on the year with downgrades trailing upgrades modestly by a margin of 0.8 to 1, according to a new Fitch report.

Sovereign downgrades trailed upgrades for the first time since 2011. The share of sovereigns downgraded - 9.4% and upgraded - 11.3% contracted from 2013's 15.5% and 11.7%, respectively.

Mixed signals emanated from developed markets (DMs), with both France and Bermuda downgraded, while Spain and Ireland were upgraded. Emerging market (EM) downgrades divided almost evenly between EMEA and LATAM, with each region reflecting economic and political concerns. Emerging markets downgrades (8) aligned closely with upgrades (9) by a slim margin of 0.9 to 1, and developed market sovereigns downgraded (2) were in line with those upgraded (3).

Argentina recorded the sole sovereign foreign currency default for 2014 when it was unable to cure a missed payment. The 2014 sovereign long-term foreign currency default rate was 0.94%.

This new study provides data and analysis on the performance of Fitch's sovereign ratings in 2014 and over the long term, capturing the period 1995-2014. The report provides summary statistics on the year's key sovereign rating trends.

The full report is titled 'Global Sovereign 2014 Transition and Default Study' and is available on Fitch's web site at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: Fitch Ratings Sovereign 2014 Transition and Default Study

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862689

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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 ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Charlotte Needham, +1-212-908-0794
Senior Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Paul Rawkins, +44-20-3530-1046
Senior Director
or
Media Relations:
Peter Fitzpatrick, London, +44-20-3530-1103
[email protected]
Elizabeth Fogerty, New York, +1-212-908-0526
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Needham Starts Faeth Therapeutics (FTH) at Buy
• Natural Grocers® Hosts In-Person Hiring Event in Appleton, Wisconsin on August 25, 2026
• Solerus Announces Plans for New Growth Fund for High-Net-Worth Investors