Weighted risk against the credit ratings of large countries

New delhi date. Saturday, October 17, 2020

In the case of the second wave of coronavirus in the world, the credit ratings of some of the world's largest countries may be cut in the coming months or they may be downgraded, according to a report by S&P Global.

Corona has severely damaged the financial position of some countries due to the huge cost of supporting the health system, companies and workers.

S&P has already downgraded or cut the outlook of about 50 countries. The 15- to 20-point increase in GDP of some countries, which usually takes four to five years to increase, may see a shift in the math.

The ratings of some developed countries such as the European Union or Japan or the UK that have implemented fiscal and monetary packages could be at risk. It remains to be seen how the situation will turn out. Ratings could change if there is a major structural change in the situation from now on. Of the countries to which ratings are provided by S&P, 21 currently have negative outlooks.


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