S&P warns of sovereign downgrades linked to debt burden

Tokyo

A DAY after the World Bank flagged the potential dangers of rising credit exposures in some leading Asian and emerging markets, ratings agency Standard & Poor's (S&P) has warned that a raft of sovereign downgrades in credit ratings could be in the offing.

Even as markets continue to speculate on the timing of the next US Federal Reserve rate hike, S&P said in a report that the ratings of a number of major economies could be cut or that their outlooks could be lowered if record low interest rates rise to more normal levels.