EM firms likely to record lowest defaults on debts
ABU DHABI, 6 hours, 8 minutes
ago
The percentage of Emerging Market firms defaulting on debts due to the impact of the pandemic is expected to be lower than in many mature markets, according to global asset manager Aberdeen Standard Investments (ASI).
While the Covid-19 pandemic has posed serious challenges that have affected all industries in some shape or form. Despite the continuing negative impact of the pandemic, investment experts at the firm believe there are some good reasons why this EM corporate resilience should be sustained in 2021 and beyond.
Kathy Collins, Investment Director, Emerging Market Corporate Debt, Aberdeen Standard Investments, said: “The ongoing Covid-19 pandemic has severely impacted economic growth and business activity throughout the world. Reduced revenues and profits have made debt servicing more challenging for more companies and this is reflected in more distressed credits and rising corporate default rates.