Fitch downgraded the credit ratings of 10 countries today, including Russia, Mexico, South Korea, South Africa, Chile, Malayasia, Hungary, Romania, Bulgaria and Kazakhstan. As stated in a press release:
” The Long-term foreign currency Issuer Default Ratings (IDR) of Bulgaria and Kazakhstan are downgraded to ‘BBB-‘ (BBB minus) from ‘BBB’, with Stable and Negative Outlooks respectively. Hungary’s Long-term foreign currency IDR is downgraded to ‘BBB’ from ‘BBB+’ and the Outlook revised to Stable from Negative given the IMF-led rescue package. Romania’s Long-term foreign currency IDR is downgraded to ‘BB+’ from ‘BBB’ with Negative Outlook, as the risk of a severe economic and financial crisis increases.
The rating Outlooks on four – Korea (‘A+’), Mexico (‘BBB+’), Russia (‘BBB+’) and South Africa (‘BBB+’) – are revised to Negative from Stable; while the rating Outlooks on Chile (‘A’) and Malaysia (‘A-‘ (A minus)) have also been revised to Stable from Positive.”
According to the International Monetary Fund, Russia is the world’s 11th biggest economy; Mexico is number 13; and South Korea is 14.
So some major economies took a hit today.