Sovereign & Supranational

Highlights

• 22 May 2013
  • Key Drivers of Turkey's Sovereign Ratings Upgrade to Baa3
    Our decision was driven by recent and expected future improvements in key economic and public finance metrics and progress on structural and institutional reforms that we expect will reduce existing vulnerabilities to shocks to international capital flows over time. The stable outlook reflects our expectation of continued prudence in the management of the public finances and sustained momentum behind current structural and institutional reforms... Full Report
• 20 May 2013
  • Italy's Stronger Budgetary Performance Still Justifies Higher Rating Than Spain
    In our view, Spain has advanced further in correcting the loss in its external competitiveness and - given the more favourable political constellation than in Italy - the Spanish authorities should also be able to implement further structural reforms more easily than in Italy. Consequently, our base-case scenario anticipates a somewhat stronger growth recovery over the medium term in Spain than in Italy... Full Report​​
  • New budget projections are credit positive for US
    The non-partisan US Congressional Budget Office’s updated outlook for the US shows an improvement in government debt-to-GDP trends, assuming no additional policy measures. Despite the still subdued economic performance, the growth outlook appears to be more supportive of fiscal consolidation. Successful budget negotiations would contribute to further downward revisions to the debt trajectory, but their outcome remains uncertain... Full Report​​