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Fitch Warns Emerging Markets Face More Downgrades This Year

  • Latam, Middle East, Africa may have lower credit ratings
  • Strong dollar expected as U.S. growth outpaces Europe, Japan
Construction Projects In The Capital Ahead Of GDP Figures
Photographer: Cesar Rodriguez/Bloomberg
Updated on

Emerging markets face more downgrades than upgrades this year as foreign debt levels leave them vulnerable to rising U.S. interest rates and the strength of the dollar, according to Fitch Ratings.

Latin America, the Middle East and Africa will be impacted more by lower credit scores because of the high share of their foreign-currency debt, said James McCormack, Hong Kong-based global head of sovereign and supranational group at Fitch.