Sri Lanka, April 9 -- Frontier markets such as Sri Lanka, Pakistan (Caa2 positive) and Bangladesh, which do not have the capacity to import as much from the US and whose current account balances are relatively fragile, could see a worsening of their broader external positions that will potentially weigh further on the outlook for economic growth, according to the latest report by Moody's Ratings.
The new tariffs on APAC economies are more draconian than market expectations and will be credit negative for the region, but with some differentiation.
Some of the highest tariffs (>30%) were applied to a number of economies in the ASEAN bloc, such as Cambodia (B2 stable), Laos (Caa3 stable), Vietnam (Ba2 stable), Thailand (Baa1 stable) and Indo...