S&P Gives Favorable Ratings To Asian Governments

Standard & Poor’s in a report released yesterday said that it continues to expect a positive trend for sovereign ratings of Asian governments. This announcement comes despite the higher oil prices, rising interest rates and inflationary pressures. Of the 19 Asia-Pacific sovereigns rated by S&P, eight have a positive outlook, while two have a negative outlook.

Taiwan has retained its negative outlook. S&P has also retained Taiwan's AA- rating for long-term local and foreign currency sovereign ratings. The only recent negative rating action taken was on Sri Lanka, whose outlook was revised to negative because of the escalating military conflict. The outlook for Hong Kong and India was revised to positive from stable because of fiscal improvement. S&P also upgraded the outlook for Indonesia to positive from stable, and Philippines to stable from negative.