S&P Global Ratings lowered its outlook on the Philippines to stable from positive, saying the war in the Middle East has raised risks for the country’s balance of payments and fiscal position https://t.co/g22xbSHVTy ...

Moody’s downgraded British Columbia and kept a negative outlook, the latest in a series of cuts for Canada’s third-most populous province as its fiscal position weakens under macro pressure https://t.co/sH1tMYpvNZ ...

Core Viewpoint - S&P Global Ratings has revised Iceland's long-term ratings outlook to positive, indicating potential improvements in budgetary performance and a decline in government debt [1][2]. Group 1: Fiscal Performance and Projections - Iceland's budgetary performance is expected to strengthen over the next two years, with net general government debt projected to decline to 35% of GDP by 2029 from an estimated 41% in 2025 [2]. - The general government deficit is projected to reduce to 0.2% of GDP by 2027, down from an estimated 1% of GDP last year, with a balanced budget anticipated from 2028 [3]. - Stronger budgetary performance could arise from buoyant economic growth, effective spending controls, or privatization of public assets leading to fiscal dividends [3][4]. Group 2: Potential Rating Changes - S&P may raise Iceland's ratings if fiscal performance exceeds current forecasts, driven by faster growth, effective spending containment, or additional asset privatizations [4]. - The diversification of Iceland's economy into sectors like data centers, biotech, and pharmaceuticals could enhance long-term resilience [4]. Group 3: Risks to Outlook - The outlook could revert to stable if Iceland's growth underperforms expectations due to factors like volcanic activity, rising fuel prices, or global trade tensions [5]. - Weaker budgetary outcomes or increased defense spending without offsetting measures could also lead to a stable outlook revision [5].

Australia’s fiscal position has deteriorated in the past year as rising expenses across federal, state and territory governments outstripped stronger-than-expected revenue, according to the Parliamentary Budget Office https://t.co/vRjDVn3ThH ...

S&P downgraded Bahrain for the first time since 2017 as the Gulf country’s fiscal position deteriorates and debt levels rise https://t.co/nf565Ko4LW ...