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S&P today said that its downgrade of the US would have an impact on the exports and liquidity positions of Asia-Pacific economies, but poses no immediate risk to their sovereign ratings.
Without specifically naming India, the global ratings agency said that the potential longer term consequences of a weaker financing environment, slower growth and higher risk aversion were, however, some negative factors for Asia-Pacific sovereign ratings.
It also warned that the ratings downgrade of the US, along with the weakening sovereign creditworthiness in Europe, was pointing towards “an increasingly uncertain and challenging environment ahead’’.
It said since the Asia-Pacific economies are dependent on exports to the US and Europe, some of the nations, like Thailand, Malaysia and Japan, are likely to “experience export-driven slowdown, either through weaker demand or lower export prices, or both’’.
Late on Friday, global ratings agency S&P downgraded its US sovereign rating to AA+ from AAA, with a negative outlook.
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