...Emerging Markets Face Challenges: The first possible US interest rate rise in more than a decade later this year has the potential to disrupt markets, even if only temporarily. Other major central banks remain in extreme easing mode and this monetary policy divergence is set to cause strains for emerging-market (EM) borrowers, as capital flows back to the US. Many EM sovereigns already face lower commodity prices and a continued weakness in global trade. Fitch Ratings' economic growth projections for 2015 for the largest EMs span a wide range: Russia -3.5%, Brazil -1.5% and China 6.8% (gradually slowing). EM Refinancing and FX Risk: Fitch expects refinancing and foreign-exchange risk to be greatest for corporates in Russia, central and Eastern Europe, Latin America and Indonesia. The less-developed capital markets in these countries lead companies to assume unhedged FX risk and short-term debt. For financial institutions, Turkey stands out with high levels of US dollar-denominated debt....
