Sovereign Credit Fundamentals: Matching Asia Against the World

Asian countries have good growth prospects, but display below-par fiscal performances which require a commitment to policy change.

In simple terms, comparing rated Asian sovereigns with global peers provides the following crude indicators lower incomes, more robust growth prospects, worse public finances, considerably better external position, and mixed monetary achievements with lower inflation, but weaker financial systems. Seven years on, the financial crisis has left lasting imprints on Asian economies.

This article provides an overview of the key credit fundamentals of Asian sovereigns, and a general comparison with their global peers across the rating scale.

Standard Poor's methodology for rating sovereign governments is based on global criteria see 'Sovereign Credit Ratings A Primer', published March 2004, and 'Sovereign Credit Characteristics by Ratings Category', published November...

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