Standard & Poor's has sounded the alarm over the creditworthiness of some Asian countries, saying they are at risk of debt downgrades even if the global economy stabilises.

The credit ratings agency said yesterday that sovereign debt ratings were coming under pressure because of huge economic and financial rescue packages announced by governments that have led to spiralling budget deficits. Recent fiscal measures to fight recession and stabilise banking systems would weigh on the public finances of several Asian economies, S&P said. Rising national debts would put credit ratings under strain.

“The worst of the economic dislocation in Asia Pacific appears to be over, if recent indicators are to be believed, but fiscal deterioration resulting from stimulus and banking sector support measures will continue to put pressure on a number of sovereign ratings in the medium term,” said S&P.