Is food the new oil?

Standard & Poor's says ongoing high food costs will significantly increase the susceptibility of some countries to negative ratings movements.

Soaring global food prices constitute a negative exogenous shock for numerous rated sovereigns. In this review we conclude that although a food price rise in itself is unlikely to be the direct cause of negative ratings action, for many sovereigns, ongoing high food costs will significantly increase overall susceptibility to negative rating movements by exacerbating already weak external and fiscal positions, or by increasing the potential for political and social unrest.

Sovereigns facing elevated vulnerability comprise a number of small...

FinanceAsia has updated its subscription model. Registered readers now have the opportunity to read five articles from our award-winning website for free. Please subscribe for unlimited access.

Click for more on: inflation | standard & poor's

Print Edition

FinanceAsia Print Edition

EVENTS