Country Risk Report. Fourth quarter 2014

Some signs of unease appeared is DMs countries. EMs driven by geopolitical fears and FED normalisation expectations. EMs portfolio flows back to pre-tapering levels. Three quarters in positive territory but caution ahead FED movements. Diversification in EM flows increased. Emerging and periphery sovereign markets moving to fair values. Rating agencies activity relaxed. Japan, Russia and Italy downgraded. Market’s implicit ratings close to the rating agencies. Market pressure for a new downgrade in Russia and a potential upgrade in Philippines.

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