FRANKFURT: Sharply lower prices for oil will have ramifications for many countries, in Standard & Poor’s Ratings Services’ view.
This is according to a report published today titled “Plummeting Prices Weigh On Ratings For Some Oil Exporting Sovereigns” on Ratings Direct.
The major oil exporting countries are likely to experience the biggest effects because of the large role oil typically plays in their economies, external trade, and fiscal position. Therefore, based on changes to our oil price assumptions, we have reviewed, since Feb. 5, the credit ratings on 13 oil exporting sovereigns. As a result, we have affirmed the ratings and outlooks on five sovereigns that either benefit from substantial fiscal and external buffers to weather the detrimental effect of lower oil prices, or where oil plays a lesser role for their sovereign key credit metrics. In the other eight cases, we have lowered the ratings or assigned a negative outlook–or both.