Credit rater Moody’s Investors Service provided a negative outlook for sovereign ratings globally for the coming 12 to 18 months, reflecting its assessment of the direction of fundamental credit conditions for sovereigns for 2017. Moody’s latest analysis is included in its Global Sovereign Outlook report, which is an annual update to the markets and does not constitute a rating action. So we are seeing a gradual but broad-based shift in policy towards loosening fiscal policy in order to lift growth,” he said. However, a shift toward looser fiscal policy carries risks for the creditworthiness of many sovereigns, givengenerally already elevated debt levels. The implications of the US election outcome for the direction of global capital flows are hard to predict at this stage, it added.

Source: Manila Times November 14, 2016 16:56 UTC