Fitch APAC Chart: Low Income, High Public Debt Weigh on Asia Frontier Sovereigns
OREANDA-NEWS. Fitch Ratings says structural factors - including low per capita income, weak governance indicators, and high political risks - weigh on the ratings of Asia frontier sovereigns, even though they exhibit some of the strongest GDP growth rates globally in recent years.
Public debt across many of these countries has also increased since 2011, particularly in Mongolia and Vietnam. Commodity dependence is generally lower across Asia frontier sovereigns compared with peers in other regions, which in part reflects economic models focused on the export of garments and other labour-intensive manufactured goods.
Asia frontier sovereigns rated by Fitch include Bangladesh (BB-/Stable), Mongolia (B/Stable), Pakistan (B/Stable), Sri Lanka (BB-/Stable), and Vietnam (BB-/Stable).
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