Fitch Ratings 2021 Outlook: Latin American Sovereign ratings

Nearly half of the Latin American sovereign ratings are on Negative Outlook, which indicates that there is significant scope for downward rating actions in 2021. Nine sovereigns are on Negative Outlook compared with seven at end-2019. This is despite several rating downgrades during this year. The pace of recovery will differ across countries and will partly also depend on the success of virus containment and successful opening of economies, as well as the effectiveness of supportive policies implemented this year, said credit rating agency Fitch Ratings on its 2020 outlook on Latin American sovereign debt issuers. What to Watch A resurgence of coronavirus in the region leading to renewed shutdowns with adverse economic and fiscal implications. Setback in fiscal consolidation […]