Tuesday, August 9, 2011

S & P predict Asia's 2nd global crisis

Source: Press TV

Credit ratings agency Standard and Poors predicts a new global financial crisis for Asia, particularly those nations heavily exposed to offshore markets.

"If a renewed slowdown comes, it would likely create a deeper and more prolonged impact than the last one," Reuters reported, citing a statement by S&P released on Monday.

The agency listed the countries most vulnerable to disruptions in offshore capital markets as Pakistan, Sri Lanka, Fiji, Australia, New Zealand, South Korea and Indonesia.

It also said several nations, again including New Zealand, were still repairing their government finances and could be more constrained in responding to a fresh global crisis.

“The implications for sovereign creditworthiness in Asia-Pacific would likely be more negative than previously experienced, and a larger number of negative rating actions would follow,” the statement noted.

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