Fitch APAC Chart: Low Income, High Public Debt Weigh on Asia Frontier Sovereigns
February 11 2016 - 9:18PM
Business Wire
Link to Fitch Ratings' Report: APAC Sovereigns Chart of the
Month - Feb
2016https://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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Fitch RatingsAndrew Fennell, +852 2263 9925Associate
DirectorFitch (Hong Kong) Limited19/F Man Yee Building68 Des Voeux
Road Central, Hong KongorAndrew Colquhoun, +852 2263 9938Head of
Asia-Pacific SovereignsorMedia Relations, Hong KongWai-Lun Wan,
+852 2263 9935wailun.wan@fitchratings.com