Gap Getting WiderFebruary 2012 |
BMI View: In our last sovereign risk ratings, we argued that there were more credit downgrades in the pipeline, and since September there has been a discernible shift in this direction by some of the major ratings agencies, particularly in the Caribbean region. At the same time, we have seen several Latin American sovereign countries benefit from higher commodity prices, while for others high prices have allowed governments to persist with distortive economic policies. The net result has been a wider discrepancy between those at the top and those at the bottom of our ratings, throwing up one or two potential relative value plays in the process.
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