S&P Global Ratings in a report released yesterday, warned that debt pile in emerging markets which has burgeoned to around $435 billion, to be repaid in the next 10 years, pose “new potential risks” to sovereign ratings. It said Governments that may need to bail out state-owned businesses could face economic weakness, an erosion of revenues and pressure on external accounts.

“The pronounced negative bias suggests that the gradual slide of EM sovereign ratings is not only likely to continue, but to gather pace,” S&P Global Ratings said in a report yesterday.

S&P echoed warning from IMF report published last month, add to an already gloomy picture for sovereign credit ratings. They have nine of the top 20 EMs on negative outlook, including South Africa, and their pessimism has been compounded by a new study on contingent liabilities related to state entities.

Emerging-market stocks fell for a fifth day in the longest stretch since December and a selloff in currencies deepened on speculation a U.S. jobs report Friday will underscore prospects for the Federal Reserve to raise interest rates as soon as June.