According to Moody’s rating agency Head of Sovereign Ratings Alastair Wilson, the year 2018 had more rating downgrades than upgrades. This was fueled more by rising geopolitical tensions exacerbated by the United States – China trade war, brexit concerns in the EU and the Argentina debt crisis.
Wilson said politics will continue to fuel downside risk that will affect affect banks and corporations.
Slow growth in China will be another key driver for global concern, as nations grapple with lowering debt stock while simultaneously growing their ailing gross domestic products, he said.
Wilson said the window for addressing credit challenges was narrowing.
***Edited by Oscar Meander***