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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
Hundreds of Belizians and international supporters gather on an island to form a message on the Barrier Reef off the coast of Belize City.

While India is still growing, though at a slow pace, many countries have not yet been able to come off the last decade’s financial crisis. Recently Argentina defaulted on payments to its lenders.

Post the default, credit rating agencies have classified the investment grade of the country as ‘poor quality and very high risk’ (technically called as Caa1 rating).

Argentina is not alone. 24/7 Wall St., an online news portal, has come up with a list of 11 more economies that have a risk of defaulting in future based on Moody’s rating of each country.

Let’s take a look at countries that have a high chance of defaulting and even going bankrupt.

Here's a guide to Moody's credit ratings from Wikipedia.

Moody's credit ratings
Investment grade
RatingLong-term ratingsShort-term ratings
AaaRated as the highest quality and lowest credit risk.Prime-1
Best ability to repay short-term debt
Aa1Rated as high quality and very low credit risk.
Aa2
Aa3
A1Rated as upper-medium grade and low credit risk.
A2Prime-1/Prime-2
Best ability or high ability to repay short term debt
A3
Baa1Rated as medium grade, with some speculative elements and moderate credit risk.Prime-2
High ability to repay short term debt
Baa2Prime-2/Prime-3
High ability or acceptable ability to repay short term debt
Baa3Prime-3
Acceptable ability to repay short term debt
Speculative grade
RatingLong-term ratingsShort-term ratings
Ba1Judged to have speculative elements and a significant credit risk.Not Prime
Do not fall within any of the prime categories
Ba2
Ba3
B1Judged as being speculative and a high credit risk.
B2
B3
Caa1Rated as poor quality and very high credit risk.
Caa2
Caa3
CaJudged to be highly speculative and with likelihood of being near or in default, but some possibility of recovering principal and interest.
CRated as the lowest quality, usually in default and low likelihood of recovering principal or interest.

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
A woman stands in a queue holding former Ecuador currency, sucres, in Quito.

Ecuador

Moody’s credit rating: Caa1

Moody’s outlook: Stable

2014 Gov’t debt (pct. of GDP): 24.8 per cent

2014 GDP per capita (PPP): $10,492

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST

Egypt

Moody’s credit rating: Caa1

Moody’s outlook: Negative

2014 Gov’t debt (pct. of GDP): 91.3 per cent

2014 GDP per capita (PPP): $6,696

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
A man and child eat food that they begged for from a nearby food stall, outside a closed shop in Karachi.

Pakistan

Moody’s credit rating: Caa1

Moody’s outlook: Stable

2014 Gov’t debt (pct. of GDP): 63.7 per cent

2014 GDP per capita (PPP): $3,231

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
An anti-government protester throws a tear gas canister back at the police during a protest against the government.

Venezuela

Moody’s credit rating: Caa1

Moody’s outlook: Negative

2014 Gov’t debt (pct. of GDP): 51.6 per cent

2014 GDP per capita (PPP): $13,531

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
A woman holds her child as she begs for money in Buenos Aires.

Argentina

Moody’s credit rating: Caa1

Moody’s outlook: Stable

2014 Gov’t debt (pct. of GDP): 52.9 per cent

2014 GDP per capita (PPP): $18,917

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
An aerial view of the city of San Pedro.

Belize

Moody’s credit rating: Caa2

Moody’s outlook: Stable

2014 Gov’t debt (pct. of GDP): 80.4 per cent

2014 GDP per capita (PPP): $8,915

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
A demonstrator holds a placard as she stands in front of national guards during a protest near Cuba's embassy in Caracas.

Cuba

Moody’s credit rating: Caa2

Moody’s outlook: Stable

2014 Gov’t debt (pct. of GDP): N/A

2014 GDP per capita (PPP): N/A

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
Anti-Troika protesters march through central Nicosia during a demonstration.

Cyprus

Moody’s credit rating: Caa3

Moody’s outlook: Positive

2014 Gov’t debt (pct. of GDP): 121.5 per cent

2014 GDP per capita (PPP): $24,171

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
Protesters take part in a demonstration against public sector layoffs.

Greece

Moody’s credit rating: Caa3

Moody’s outlook: Stable

2014 Gov’t debt (pct. of GDP): 174.7 per cent

2014 GDP per capita (PPP): $24,574

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST

Jamaica

Moody’s credit rating: Caa3

Moody’s outlook: Positive

2014 Gov’t debt (pct. of GDP): 133.7 per cent

2014 GDP per capita (PPP): $9,256

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11 countries that can soon go bankrupt

Last updated on: August 26, 2014 15:48 IST
A person drops money into a container of a begging woman in Kiev.

Ukraine

Moody’s credit rating: Caa3

Moody’s outlook: Negative

2014 Gov’t debt (pct. of GDP): N/A

2014 GDP per capita (PPP): N/A