LatAm Defaults Edge Up: S&P

LatAm Defaults Edge Up: S&P

Corporate & Sovereign Strategy

The speculative-grade default rate for LatAm and the Caribbean has edged up to 2.8% as of July 31, from 2.45% a year ago, S&P says. This compares to an EM rate of 2.3% as of July 31. “The number of downgrades increases significantly during periods of economic stress, resulting in more entities having lower ratings than during periods of economic expansion. The decline in market liquidity combined with stressed credit conditions to exacerbate the situation, leading to a higher number of defaults

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