D&B downgrades China and Singapore as a result of Covid-19 outbreak

February 28, 2020 (MLN): Dun & Bradstreet has provided the revised risk ratings of several countries that have been, or are on the verge of being affected by the novel Covid-19 infection, as well as numerous other economic and political factors.

According to the report issued by D&B, the countries that have been downgraded as a result of the epidemic include China, for fairly obvious reasons, and Singapore.

China’s risk rating has been downgraded from DB4c to DB5a due to the national public health emergency caused by the coronavirus outbreak, and the severe disruption caused both to supply chains and commercial activity.

Singapore’s country risk level has deteriorated as public health risk from coronavirus increases and the wider economy faces headwinds from slower demand in China.

On the flip side, the countries that have seen an improvement in their risk level include Australia, Guatemala, India, and Malta.

Australia’s economy has risen from 'deteriorating' to 'stable' amid market environment stabilization, a reduction in downside risk and an improvement in business expectations, while Guatemala’s risk appetite has improved from deteriorating to stable following the installation of Alejandro Giammatei as the new president.

Dun & Bradstreet has upgraded India’s rating from 'deteriorating rapidly' to 'deteriorating' due to signs of stabilization in both output and confidence, and Malta’s overall risk rating outlook to ‘stable’ as the new government has sworn in.

The countries whose risk ratings have worsened as per Dun & Bradstreet, include Bangladesh, Hong Kong, Ireland, Japan, Libya, and Slovenia.

Bangladesh’s rating has slumped from ‘Stable’ to ‘Deteriorating’ as the coronavirus and the EU-Vietnam FTA raise downside risks for the country's key export-oriented garments sector.

Hong Kong’s rating has followed precisely the same direction as Bangladesh, as the mainland coronavirus outbreak has hurt demand and confidence in an economy already weakened by eight months of protests.

Ireland’s rating has moved from ‘Improving’ to ‘Stable’ against the background of an inconclusive election and the risk of both prolonged negotiations and another election.

Japan has hopped from ‘Stable’ to ‘Deteriorating’ in light of the multiple consequences of China's uncontained coronavirus outbreak.

Libya has been placed within the category of ‘Deteriorating Rapidly’, as the oil blockade has a significantly adverse impact on the economy.

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