Furthermore, only three of the eighteen Latin American sovereigns
that Fitch rates are on positive outlook now.
Argentina's net external debt relative to broad exports is higher than for all other speculative grade sovereigns
save Malawi (LTFC IDR 'CCC').
In 2005, Fitch upgraded five sovereigns
in the region, similar to the number of upgrades made in 2004.
SAN DIEGO -- Relational Investors LLC, the largest shareholder of Sovereign
Ecuador is among the lowest rated sovereigns
at 'B-', though it was upgraded last year when it seemed more likely that incremental oil revenues would be saved in a special fund.
The Fitch report features articles on the impact on the region of the end of textile and clothing quotas with the phasing out of the Multi-Fiber Agreement and the comparison of two bellwether sovereigns
, Brazil and Turkey, as well as country updates on key sovereigns
in the region and a discussion of the rating implications of a bond restructuring in Argentina and one likely to occur in the Dominican Republic.
In addition to receiving their keys to Cessna's newest midsize jet, the new Sovereign
owners learned that the Sovereign
's range is over 100 nm better than anticipated.
According to the report, broadly speaking, Mexico's public finances and monetary and exchange rate policies are transparent relative to similarly rated sovereigns
and even comparable to more highly-rated sovereigns
While the improving fundamentals of emerging market sovereigns
are an encouraging sign, there are still isolated problems that pervade the sector and, as such, Fitch remains wary.
Although public sector and external debt (including private sector) are expected to increase to 50% of GDP and 41% of GDP, respectively, by the end of 2003, this is still low relative to other sovereigns
in the 'B' rating category.
NEW YORK -- Fitch Ratings has released a Special Report on Brazil, 'Brazil: Watch Domestic Debt Profile & Rollovers,' which argues that a key driver of Brazil's sovereign
credit story in the coming months will be the ability of the Federal Treasury to roll over its domestic debt and to limit any deterioration in the debt profile, in light of recent volatility in the capital markets.
Credit Trends: Asia Turns the Corner?