Outlook for the region

Fitch: Negative Ratings Bias for LatAm Sovereigns Amid Slowing Regional Growth

Date:

Fitch: Negative Ratings Bias for LatAm Sovereigns Amid Slowing Regional Growth

Author: Alicia Miguel

  1. Fitch downgraded the sovereign ratings of Bermuda, Guatemala and Venezuela by one notch each during the first half of 2014
  2. Only Paraguay has a Positive Outlook while Argentina (Local IDR only), Aruba, El Salvador and Venezuela have Negative Outlooks
  3. Currently more countries with negative Outlooks than Positive Outlooks
  4. Softer commodity prices, China's slowdown, slower domestic demand and country-specific factors are clouding the near-term prospects of the Latin American region
  5. At the same time, Fitch does not anticipate broad-based negative rating actions