On the other hand, predominantly
(emerging) economies with lower current levels of economic prosperity
belong to the fastest-growing countries. But companies in economies
that have just started to grow should on average be at an earlier stage
of their development,making them more risky and resulting in lower ratings
and higher spreads. GDP per capita—an indicator of the level of economic
development—should be positively related to higher ratings and
lower spreads.3 An economy with a high current balance/GDP should,
on average, be home to financially healthier companies capable of competing
in international markets with their goods and services. Thus, a
high current account/GDP ratio should be correlated with higher ratings
and lower spreads