NEW
YORK, June 7, 2022 /PRNewswire/ -- Disruptions
stoked by the global pandemic and Russia-Ukraine war are increasing the risks of a more
divided and unstable global system, said S&P Global Ratings in
a new report, Geopolitical Shifts Are Exacerbating Credit Risks.
The report is part of S&P Global Ratings' "A World Redefined"
2022 research focus.
Credit conditions could significantly worsen if sanctions spur
additional supply and price shocks, economic growth slows further,
or central banks commit policy missteps, the report said.
Widening systemic inequalities and ideological polarization will
likely fuel nationalistic and populist policies that threaten
economic efficiency, credit quality, and social stability.
Nations face competing priorities involving (physical, energy
and food) security, economic efficiencies, and energy
transitions.
A repricing of risk that drives up borrowing costs or limits
access to funding for global market participants are additional
credit risks.
Emerging markets and low-income economies find themselves more
exposed to risks of social unrest and political instability linked
to higher interest rates and inflation.
S&P Global Ratings sees 2022 as a year of divergence and
accelerated disruption that will redefine the global economy and
credit landscape. If the first half of this year has been defined
by disruption, the next six months will likely be shaped by
increased fragmentation and ongoing reorientation, the report
concludes.
This report does not constitute a rating action.
Media Contact:
Jeff Sexton, New York
+1 (917) 596-3417
jeff.sexton@spglobal.com
S&P Global Ratings is the world's leading provider of
independent credit ratings. Our ratings are essential to driving
growth, providing transparency and helping educate market
participants so they can make decisions with confidence. We have
more than 1 million credit ratings outstanding on government,
corporate, financial sector and structured finance entities and
securities. We offer an independent view of the market built on a
unique combination of broad perspective and local insight. We
provide our opinions and research about relative credit risk;
market participants gain independent information to help support
the growth of transparent, liquid debt markets worldwide.
S&P Global Ratings is a division of S&P Global
(NYSE: SPGI), which provides essential intelligence for
individuals, companies and governments to make decisions with
confidence. For more information,
visit www.spglobal.com/ratings.
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SOURCE S&P Global