Emerging markets are showing structural resilience: takeaways from the S&P Global Ratings Emerging Markets conference
A very insightful day at the S&P Global Ratings Emerging Markets conference, including a notable fireside chat with H.E. Mehmet Şimşek, Turkey’s Minister of Finance.
Emerging markets continue to navigate transformational global shifts – from AI adoption and geopolitical fragmentation to rising developed-market yields. Despite these headwinds, structural reforms and policy discipline are driving remarkable resilience across the asset class. Our key takeaways from the sessions:
The EM big picture
Emerging markets are showing structural resilience amid global shocks, achieving more rating upgrades than downgrades as domestic capital markets deepen and external buffers hold strong.
Credit outlook, macro outlook and geoeconomics
Credit divergence is accelerating across emerging markets as higher borrowing costs, commodity pressures and prolonged geopolitical conflicts test weaker borrowers, while stronger credits maintain robust market access.
Africa’s new financial architecture
In a fireside chat with Dr. Sidi Ould Tah of the African Development Bank Group, Africa’s new financial architecture (NAFAD) was presented as a plan to mobilise $4 trillion in domestic savings and use hybrid-capital multiplier effects to bridge the continent’s development financing gap.
Middle East and Africa deep dive
While geopolitical dislocations and supply-chain friction push up costs, the policy adjustments made since 2022 have given Middle East and African credits vital resilience against external shocks.
Unlocking capital via MLIs, local currency and innovation
Mobilising large-scale private capital into emerging markets requires a shift from bespoke transactions to programmatic risk transfers, partial credit guarantees and expanded local-currency debt markets.
Turkey
Turkey is navigating complex regional geopolitical shocks by maintaining strict fiscal discipline, building foreign-exchange buffers and executing targeted disinflation measures.
At ALPHA Ratings Advisory we help multilateral lenders, financial institutions and corporate issuers – especially in the Middle East and Africa – navigate and optimise their credit rating strategies and unlock market access.