...S&P Global Ratings has seen a mild deterioration at the top end of the ratings scale among the 20 emerging market (EM) sovereigns with the highest absolute levels of outstanding commercial debt. Sovereign creditworthiness in this group has declined by just under one notch, on average, since 2010 (see chart 1). That said, at 60%, the proportion of EM sovereigns that we rate at '###-' or above and consider to be investment-grade has remained broadly in line with the average during the past decade and is largely unchanged since our June 2017 midyear report (see "Emerging Markets Sovereign Rating Trends Midyear 2017," published on July 12, 2017). Over the past six months, the balance between negative and positive outlooks on the top-20 EM sovereign ratings has markedly improved. It is now exactly balanced, with three positive outlooks (Egypt, Hungary, and Russia) and three negative outlooks (Brazil, Qatar, and Turkey). By contrast, in June we had eight negative outlooks in the group, over twice...
