Sunday, July 21, 2013

Golden ratings era ending for emerging markets

<p>LONDON: A decade of improvement in emerging market credit ratings is coming to an end as higher borrowing costs and commodity price falls threaten to lay bare many countries' failure to reform during the good times.</p><p>Between 2007 and 2012 emerging economies earned almost 200 rating upgrades from the three main agencies, nearly half of them promotions to the top 'investment grade' category.</p><p>Given the weight investors still assign to credit ratings, that was a huge driver for much of the $8 trillion or so that has flowed to emerging stock and bond markets since 2004.</p><p>But this week has brought confirmation of two things, both with profound implications for the developing world. First, U.S. money-printing won't last for ever and may end in 2014. Second, China's economy is indeed cooling, and fast.</p><p><a href="http://www.thehimalayantimes.com/fullNews.php?headline=Golden+ratings+era+ending+for+emerging+markets&NewsID=380996">Keep reading...</a></p>

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