The fall in oil prices will reduce external pressures on Turkey and India because it will hold down headline inflation, said International credit ratings agency Fitch.
“Lower oil prices will increase the pressure on developing countries’ credit rating. The prices will benefit consumption in developed markets, hold down headline inflation and ease external pressures in large energy importers such as Turkey and India. There are other exceptions in emerging markets, where reform has boosted growth or lowered vulnerability to crises,” Fitch said in its official website. Fitch said that global growth will pick up some pace and the countries credit outlook will be constant in 2015. “Outlooks on global sovereign ratings are more evenly balanced than they were at the end of 2013 when there were twice as many negative as positive outlooks,” the agency added. According to Fitch, the balance of outlooks in the Eurozone points to a mild improvement in credit quality and crisis-hit countries started to recover and rebalance. Fitch also drew attention to China’s deceleration in the economic growth rate and said that it expects China to slow, Russia to enter a recession and Brazil to post a sluggish recovery. The credit ratings agency stressed that future elections, which will be held in 2015 in Spain, Portugal and Greece pose risks to the policy direction of these countries.
