Asia-pacific sovereign rating likely to remain stable despite negative outlooks, says S&P Global Ratings

Asia-Pacific sovereign rating is expected to remain stable for the foreseeable future as the number of negative outlooks for Asia-Pacific economies remains at a level not seen since the mid-2010, said S&P Global Ratings in a report

According to the report, there were around 15 sovereign ratings with a stable outlook and 5 with negative economic outlook, expect Indonesia which only poses positive outlook. It is worth noting that the recent political developments in advance countries are adding to the challenges that Asia-Pacific sovereigns face.

"Global economic performance is still weighed down by the lacklustre performances of some advanced economies," said S&P Global Rating credit analyst Kim Eng Tan in its report.

"Anti-globalization sentiments are increasing and the risk of protectionist measures is growing. This is a negative development for Asia-Pacific, which has benefited much from global trade and investment flows. The risk may rise further if upcoming elections in Europe produce more surprises," Mr Tan added.

Lastly, we foresee that if anti-trade policies become more likely or if the European Union finds further difficulties in trading in the single market, financial market volatility could return in the near future. And the resulting deterioration in financing conditions for sovereigns in this region could weaken credit metrics even before the trade impact becomes evident.