At the end of August, leading ratings agency Moody’s downgraded 18 banks and two finance companies in Turkey. According to the agency, the downgrades “primarily reflect a substantial increase in the risk of a downside scenario, where a further negative shift in investor sentiment could lead to a curtailing of wholesale funding”.
In recent weeks, the eyes of the financial world have been firmly fixed on Turkey, since its lira plunged in reaction to a doubling of trade tariffs by the United States.
Qatar is easily the richest country in the world on a per capita basis. According to a study released in March by Global Finance Magazine that used data from the International Monetary Fund (IMF)
Landlocked Bolivia is viewed as South America’s poorest country, but its fortunes may be turning for the better. The government plans to nearly double its coca production but also further develop what is purported to be the earth’s single-largest reserve of lithium, a light metal used in batteries, which is experiencing skyrocketing demand. Bolivia could be on the cusp of a rags-to-riches rebirth.
In the midst of the political and economic turmoil that has plagued Brazil in recent times, there is one financial sector that appears to have particularly strong credentials for buoyant growth over the coming years.
On May 24, Moody’s reported that it had downgraded China’s long-term local currency and foreign currency issuer ratings from Aa3 to A1. With the downgrade, China’s credit rating is now on a par with those of Israel, Japan and Saudi Arabia.
In a year marked by political change across the globe, the closing weeks of 2016 delivered yet another moment of significant upheaval. Following weeks of public protest, South Korea’s parliament voted to impeach President Park Geun-hye on December 9, while the first public hearing to kick off the trial was scheduled for January 3, 2017.
The start of 2016 could scarcely have been worse for China. A collapsing stock market, a weakening yuan and mounting capital outflows all combined to rattle markets the world over, raising genuine concern over the ability of the world’s second-biggest economy to continue delivering strong economic growth.
Turkey has suffered a series of blows in recent months, not the least of which originating from Moody’s and Standard & Poor’s, which removed the country’s investment-grade credit rating. These downgrades have reverberated throughout an admirably resilient Turkish banking industry, making tough times just that much tougher, as the overall economy slumps.
After a heavy recession brought on by the military conflict with Russia, Ukraine’s economy and banking system now appear to be firmly on the mend. Indeed, things have improved to such an extent that by the end of May, Moody’s had revised its outlook for Ukrainian banking from negative to stable.