FRANKFURT, Germany, April 5, 2022 /PRNewswire/ — Sovereign borrowing will reach $10.4 trillion in 2022, nearly a third above the pre-COVID-19 pandemic average, S&P Global Ratings said today in its latest Global Borrowing Report published today on RatingsDirect:Sovereign debt 2022: borrowing will remain high due to pandemic and geopolitical tensions“).
For an interactive version of our global and regional borrowing forecasts, see; “2022 Global Sovereign Bond Outlook”.
“We expect borrowing to remain elevated, driven by high debt refinancing needs, as well as fiscal policy normalization challenges posed by the pandemic, high inflation, and polarized social and political landscapes,” said Karen Vartapetov, credit analyst at S&P Global Ratings.
The global macroeconomic implications of the ongoing military conflict between Russia and Ukraine will put additional upward pressure on government financing needs this year.
Tighter monetary conditions will drive up government financing costs. This will pose additional difficulties for sovereign states that have not been able to revive growth, reduce their dependence on foreign currency financing and whose interest bills are already extremely high.
For advanced economies, borrowing costs this year, while on the rise, are likely to remain below the effective interest rate on outstanding existing debt, allowing time to shore up budgets and focus on growth-enhancing reforms.
Other key findings from our projections of borrowing from commercial sources in 2022 by the 137 sovereign states we assess:
The stock of commercial sovereign debt will reach a record of $66.5 trillion by the end of the year, with the United States and Japan accounts for more than half.
The G-7 group of nations will continue to contribute 70% of the total outstanding commercial debt of all rated sovereigns.
High-quality sovereign bonds (rated “BBB-” and above) will represent the majority of total issuance.
The report is available to RatingsDirect subscribers at www.capitaliq.com. If you are not a RatingsDirect subscriber, you can purchase a copy of the report by calling (1) 212-438-7280 or emailing [email protected]. Ratings information can also be found on the S&P Global Ratings public website using the ratings search field located in the left column at www.standardandpoors.com. You can also call one of the following S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Where stockholm (46) 8-440-5914
This report does not constitute a rating action.
Miriam Hespanhol, new York (1) 212-438-1406
Karen Vartapetov, PhD, Frankfurt + 49 693 399 9225
Roberto H Sifon-arevalo, new York +1 (212) 438 7358
Michelle Keferstein, Frankfurt (49) 69-33-999-104
Constance Marie Chamas, Mexico City
Media Relations Americas: (1) 212-438-6667
Americas Customer Service: (1) 212-438-7280
S&P Global Ratings is the world’s leading provider of independent credit ratings. Our ratings are essential to drive growth, provide transparency and help educate market participants so they can make decisions with confidence. We have over one million outstanding credit ratings on government, corporate, financial sector and structured finance entities and securities. We offer an independent view of the market based on a unique combination of broad perspectives and local knowledge. We provide our opinions and research on relative credit risk; market participants gain independent insights to help support the growth of transparent and liquid debt markets around the world.
S&P Global Ratings is a division of S&P Global (NYSE: SPGI), which provides essential information for individuals, businesses and governments to make decisions with confidence. For more information, visit www.spglobal.com/ratings.
If you would like to update your information (phone number, email address, company, etc.) or change the sectors for which you receive press releases, please Click here.
To visit SPRatings.com, a free, interactive and informative portal to access highlights of our credit research offerings. Think of this as your portal to perspective: www.spratings.com.
Copyright © 2022 by Standard & Poor’s Financial Services LLC. All rights reserved.
No Content (including credit ratings, analysis and data, ratings, models, software or other applications or outputs thereof) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in any database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P ). The content must not be used for any illegal or unauthorized purpose. S&P and any third party providers, and their directors, officers, shareholders, employees or agents (collectively the S&P Parties) do not warrant the accuracy, completeness, timeliness or availability of the Content. The S&P parties are not responsible for errors or omissions (negligent or otherwise), however caused, in the results obtained from the use of the content, or for the security or maintenance of any data entered by the user. The Content is provided “as is”. THE S&P PARTIES DISCLAIM ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, FREEDOM FROM BUGS, ERRORS OR DEFECTS IN THE SOFTWARE OPERATION OF THE CONTENT WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall the S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, loss of revenue or profits and opportunity costs or losses caused by negligence) in connection with any use of the Content, even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s rating recognition opinions, analyzes and decisions (described below) do not constitute recommendations to buy, hold or sell securities or make investment decisions, and do not address the suitability of a title. S&P assumes no obligation to update the Content after it is posted in any form or format. The Content should not be relied upon and is not a substitute for the skill, judgment and experience of the User, its management, employees, advisors and/or customers when making decisions about investment and other business decisions. S&P does not act as a trustee or investment adviser, except when registered as such. Although S&P has obtained information from sources it believes to be reliable, S&P does not audit and assumes no obligation of due diligence or independent verification of information it receives. Rating-related releases may be released for a variety of reasons that do not necessarily depend on the action of rating committees, including, but not limited to, the release of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities permit a rating agency to recognize in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to grant, withdraw or suspend such recognition at any time and its sole discretion. The S&P Parties disclaim any obligation whatsoever arising from the assignment, withdrawal or suspension of a recognition as well as any liability for any damage allegedly suffered as a result thereof.
S&P separates certain activities of its business units in order to preserve the independence and objectivity of their respective activities. Therefore, some S&P business units may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received as part of each analysis process.
S&P may receive compensation for its ratings and certain analysis, normally from issuers or underwriters of securities or obligors. S&P reserves the right to disseminate its opinions and analyses. S&P’s public ratings and analyzes are made available on its websites, www.standardandpoors.com (free), and http://www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed by other means, including through S&P Publications and third-party redistributors. Additional information about our rating fees is available at www.standardandpoors.com/usratingsfees.
Ratings are statements of opinion, not statements of fact or recommendations to buy, hold or sell securities or make any other investment decision. S&P Global Ratings Australia Pty Ltd holds Australian Financial Services License Number 337565 under the Companies Act 2001. S&P credit ratings and related research are not intended for and should not be distributed to any person in Australia other than a wholesale customer (as defined in Chapter 7 of the Corporations Act). Australian users should only access information about S&P’s products and services from www.standardandpoors.com.au. Other S&P websites are not intended for Australian users.
STANDARD & POOR’S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor’s Financial Services LLC.
To manage your S&P Global Ratings subscription preferences, please click here.
S&P Global Ratings, 55 Water Street, New York, NY 10041
View original content: https://www.prnewswire.com/news-releases/sovereign-borrowing-will-stay-high-on-pandemic-and-geopolitical-tensions-report-says-301518448.html
SOURCE S&P Global