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Fitch Says Risks To LatAm Sovereign Ratings More Balanced At Lower Levels

LATAM
  • There are no remaining Negative Outlooks among Fitch-rated sovereigns in Latin America following the revision of Brazil’s Outlook to Stable from Negative on 14 July, after the region saw numerous downgrades during the Covid-19 pandemic.
    • Latin American sovereigns still face meaningful challenges to creditworthiness, but risks to ratings are more balanced at lower levels.
  • The absence of Negative Outlooks signals that the rating pressure stemming directly from the pandemic in Latin America has largely run its course.
  • Furthermore, economic and fiscal recoveries in 2021 mostly exceeded Fitch’s mid-year expectations, providing some additional headroom at existing rating levels.
  • Link here: https://www.fitchratings.com/research/sovereigns/l...

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