Finance
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EMEA - Debt Dynamics Improve
March 2006 | Sovereign Risk RatingSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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The key theme of the first EMEA sovereign risk rating is the strong ratings accorded to countries which have restructured their foreign debt in recent years. Leading the pack is Russia, which is to repay US$12bn to the Paris Club this year on top of last year's prepayments. This will result in the country's debt to GDP ratio falling below 10% in 2006, at a time when forex reserves are booming. However, there are constraints on the upside to Russia's B3 rating. While the country enjoys the highest ability to pay rating in our sovereign universe, its willingness to pay