External-debt levels are far higher in the five countries than in emerging economies that have fallen victim to "sudden stops", in which foreign investors and banks stop lending and try to pull out their money.
Looking at the period as a whole (1990 2012), the factors that explained the differences in social expenditure efforts between Latin American countries were: fiscal burden and FDI growth both with a positive effect, while trade growth, the level of external debt, the increase of interest payments on debt, the level of democracy and its growth had a negative effect.
report notes, and the United States faces an "unprecedented level of external debt for a large industrial country".
"We didn't feel comfortable with the level of external debt and lack of transparency" in Dubai, he said.
While the credit agency did express concern about Australia's level of external debt it noted that this is "mostly generated by the private sector" and reflects "the productive investment opportunities available in Australia, foreign investor confidence in Australia's rule of law, the high creditworthiness of its banking system, and the positive yield available on highly rated debt".
Moody's said China's long-term foreign-currency debt was under review for a possible upgrading in recognition of China's rising exports, foreign direct investment and foreign exchange reserves and its "relatively modest level of external debt," as well as the recent peaceful transfer of power to a younger generation of Communist officials.
"By reducing De Beers's level of external debt and improving its capital structure, this investment would better enable the company to take advantage of new opportunities and demonstrate the shareholders' confidence in De Beers's continued market leadership as the recession gives way to recovery," De Beers said.
Portugal, another peripheral economy in the euro zone that is suffering from high levels of external debt, has canceled big investments like its new airport.
As well as being burdened by unsustainable levels of external debt, all five economies share the misery of trying to regain lost competitive ground through internal devaluation, in which domestic costs are ground down year after year.
