Fitch's Mid-Year Sovereign Outlook Featured in Latest 'Inside Credit' Newsletter

NEW YORK--(BUSINESS WIRE)-- This week's Inside Credit newsletter highlights the imbalance of sovereign downgrades to upgrades so far this year, according to Fitch Ratings' Mid-Year Sovereign Review and Outlook. Downgrades have outnumbered upgrades by 4:1 and the balance of Outlooks is Negative, with the greatest pressure on Emerging Market countries.

"Emerging market sovereigns face a less favorable external financing environment, with lower commodity prices and the Fed forecast to raise rates in the second half of the year," says Ed Parker, Managing Director, Sovereigns. "In addition, structural growth challenges are evident in many emerging markets. For developed market sovereigns, persistent budget deficits, rising government debt and subdued growth are the main downside risks."

The Sovereign Outlook also discusses the ramifications of the major oil prices shock, heightened bond market volatility, and the risks of a Grexit.

Other topics covered in this week's edition of Inside Credit include:

- Fitch Fundamentals Index Remains Neutral despite Rising Corporate Defaults

- Fitch Raises 2015 U.S. High Yield Default Rate Outlook to 2.5%-3%

- Greek Deal May Help Sovereign Liquidity; Big Risks Remain

- China Equity Sell-off Highlights Reform Challenges, Risks

- Search for Yield Boosts EU Investor Appetite for Hybrids

- Major Iranian Gas Exports Will Take at Least Five Years

- Russia's Positive Oil Production Trend May Reverse

- Brazil Drives Corporate Downgrades to Outpace Upgrades

- Stable Ratings for APAC Structured Finance; Counterparty Downgrades Have Minor Impact

'Inside Credit' is a weekly snapshot of Fitch Ratings' noteworthy content, selected from all sectors and regions. To receive the weekly edition, distributed every Friday at 8am ET, please sign up here:

http://pages.fitchemail.fitchratings.com/InsideCreditSignUp/

Additional information is available on www.fitchratings.com

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150717005468/en/

Fitch Ratings
Media Relations:
Alyssa Castelli, +1-212-908-0540
[email protected]

Source: Fitch Ratings

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