Moody’s proprietary indicators and data point to months of stress for emerging market sovereigns, sub-sovereigns, companies and financial institutions because of coronavirus pandemic-related global economic and financial upheaval.
While financial conditions are gradually stabilizing for most major emerging markets, the coronavirus pandemic’s shock to growth, earnings and debt burdens will increase credit vulnerabilities in the second half of 2020.
Gersan Zurita of the Credit Strategy & Research team discusses the steep decline in Mexican employment resulting from the COVID-19 pandemic and why the road to recovery will be long. Plus, Evan Wohlmann of the Sovereign team explains how heightened political instability in Belarus is negative for the country’s sovereign credit quality.
