Fitch upgraded Mexico’s long term foreign currency sovereign debt rating BBB outlook from stable to positive. An improvement in external solvency ratios and improved legal reforms such as the Fiscal Responsibility Law were cited. Analysts forecast the sovereign’s credit rating will receive a similar revision from S&P subject to the passage of a new tax reform.
S&P upgraded Poland’s long term foreign currency sovereign debt rating to A- (outlook stable) yesterday, commenting positively on “strong and balanced growth prospects, a competitive and increasingly diversified economy and a moderate and declining external debt burden”
South Africa’s PPI was +9.5% down from +9.8% y/y in January, surprising the market consensus of +10% y/y. But rising food and energy prices and a weaker ZAR are forecast. Trade balance data released today could inject yet more interest in ZAR/local yield, analysts expect.
Bank of Korea issued its annual report forecasting annual growth of 4- 4-5% fuelled by export growth, stable rates and a more balanced current account. But cautioned that low corporate investment and household debt was eroding the domestic economy. Analysts have characterized South Korea’s challenge as stuck between low cost manufacturing China and high tech Japan.
Information provided by Euromoney group sources