Credit Ratings Downgraded for 22 Countries

Credit Agency Downgrades Ratings for 22 countries


an international credit insurance and credit management services group, yesterday downgraded its ratings for 22 countries and territories, including Hong Kong and Taiwan, while putting the two biggest emerging markets — China and Russia — on its negative watch list for the first time.

To ensure sustained economic growth, which Coface said could reach 7 percent this year, China has unveiled a 4 trillion yuan (US$585 billion) fiscal stimulus package. Coface warned this could cause a significant upsurge in payment defaults.

“According to Coface’s records, payment performance in Hong Kong, Taiwan and China has been deteriorating and is likely to worsen this year as the economic slowdown tightens its grip,” Burton said. “Companies should be more careful than ever in tracking their buyers’ payment behavior.”