Downgrade potential in emerging markets elevated warns S&P

LONDON (Reuters) - The potential for credit rating downgrades of emerging market countries and companies remains elevated, Standard & Poor's said on Wednesday.

A new report from the firm said there were now 134 potential EM downgrades on the cards, almost 30 percent more than any time since the start of 2011.

The risk was the highest in eastern Europe, Middle East and African (EEMEA) and Latin American regions, with low commodity prices and decelerating economic growth both cited as factors.

The ratings on nearly 28 percent of companies in emerging markets were on downgrade warnings it added, while for the EEMEA bloc is was even higher at 38 percent.

In Emerging Asia, the negative bias in ratings was 14 percent, an increase from 11 percent at the end of June.

A number of companies based in China, primarily in the banking and real estate sectors have a negative outlook. It said that stemmed from slowing growth in China and the ongoing correction in the country's property markets.

(For report click: https://www.globalcreditportal.com/ratingsdirect/showArticlePage.do?rand=QvaLnU41ER&object_id=9387412&rev_id=3&sid=1471620&sind=A&)

(Reporting by Marc Jones)