Global Sovereign Rating Trends 2019

As of Dec. 31, 2018, S&P Global Ratings rates 133 sovereigns globally (see chart 1), and the overall credit quality of these still remains a full notch below the pre-2008 global financial crisis level, at a 'BBB-' average, or 'A+' if weighted by GDP. That said, the overall outlook balance (positive versus negative outlooks) is at positive six, continuing a process of slow improvement in the ratings that started in November 2017. This trend is more notable in Eastern Europe, where we see the highest concentration of positive outlooks globally because of a steady growth performance and improved fiscal outcomes, particularly of smaller and more flexible economies. In the Americas, on the other hand, sovereign credit quality has deteriorated since

...- On balance, our outlooks on global sovereigns are slightly positive (plus six). - Eastern Europe is the region with the most sovereign ratings assigned a positive outlook, while the American sovereigns are the most negative. In Asia-Pacific, the Middle East, and Africa, the outlook balance is slightly positive. - The rise in populism and protectionism, as well as the U.S.-China trade war, could restrict the options available to sovereign policymakers. As of Dec. 31, 2018, S&P Global Ratings rates 133 sovereigns globally (see chart 1), and the overall credit quality of these still remains a full notch below the pre-2008 global financial crisis level, at a '###-' average, or 'A+' if weighted by GDP. That said, the overall outlook balance (positive versus negative outlooks) is at positive six, continuing a process of slow improvement in the ratings that started in November 2017. This trend is more notable in Eastern Europe, where we see the highest concentration of positive outlooks globally...

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