S&P: Capital outflows, trade risks to test credit quality in emerging markets

Emerging markets should show fairly stable credit quality for the rest of the year, but a number of risks and a predicted rise in capital outflows may hamper the favorable outlook, S&P Global Ratings said in a new report.

Outflows may exceed capital inflows across emerging markets, according to the rating agency, which cited the Institute of International Finance. In addition, global trade tensions, financial market volatility, rising interest rates and a strong dollar remain risks to credit quality.