The outlook for sovereign ratings in 2023 is challenging, reflecting the effects of Russia’s protracted war in Ukraine, high inflation and monetary tightening. A sharp economic slowdown, challenging fiscal dynamics, inflation and rising official rates will underpin divergence of sovereign ratings next year. More sovereign borrowers evaluated by Scope Ratings have faced downward than upward rating actions since the escalation of Russia’s war in Ukraine in February. The overall sovereign outlook for 2023 is negative, indicating a higher likelihood of ratings downgrades next year than ratings upgrades. More than 20% of ... (full story)