Significant Credit Risks To Remain Muted

BMI View: Robust economic recoveries have seen a continued improvement in the ability of Latin American sovereigns to service external debt obligations. However, large external imbalances have seen several countries in the region slip in our sovereign risk ratings, as these look particularly vulnerable to the need to restructure sovereign debt. Nevertheless, strong 'willingness to pay' credentials should generally avert a crisis of confidence as seen in Dubai and Greece recently.

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