The sovereign issuer-based default price rose to a document excessive in 2020 towards a backdrop of weakened sovereign credit score profiles as a result of Covid-19 pandemic.
A latest Sovereign 2020 Transition and Default Study’ by Fitch Ratings confirmed that 5 Fitch-rated sovereigns defaulted in 2020 Argentina twice, Ecuador, Lebanon, Suriname twice and Zambia up from just one within the earlier yr.
As a outcome, the sovereign default price rose greater than threefold to 4.2% from 0.9% in 2019. The earlier excessive was 1.8% in each 2016 and 2017.
While downgrade pressures have eased this yr, Fitch stated its scores point out that extra
¬ Haymarket Media Limited. All rights reserved.