Are Malaysia and five others following Brazil into junk status?


NEW YORK: Six developing nations, including Malaysia and South Africa, deserve to follow Brazil into junk status, if credit-default-swaps traders are to be believed.

Two weeks after the Latin American country’s credit rating was lowered, CDS investors are punishing other emerging markets facing similar challenges, sending their implied sovereign ratings at least five levels below their official grades, according to data from Moody’s Corp.

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