S&P: Rate Hikes Hurt Countries Credit Ratings

Standard & Poor's Global, one of the world's largest credit rating agencies, has warned that a growing group of countries is likely to see pressure on their credit ratings as rate hikes hurt their already fragile financial positions.

A recent report issued by the institution's senior locals on Wednesday said that Egypt, Ukraine, Brazil and Ghana are among the emerging markets most at risk.

It also indicated that debt-laden Italy could see its largest debt-to-GDP since 2012 without the help of the European Central Bank.

The report, which assumes that lending rates could rise 300 basis points over the next three years, added, “The rate hike appears to be a financial challenge for the sovereign bond markets in a few developed countries and at least six out of 19 emerging sovereign bond markets.”