S&P has warned of the possibility of a second wave of sovereign credit rating downgrades around the world. So far in 2020, the firm has downgraded ratings or outlook for 60 countries. The problem lies in the effects of COVID-19 that be will dragged on over the next few years. In fact, some countries will add 15-20 GDP points to their public debt, which otherwise would have taken four or five years to accumulate. In addition, public spending will continue to be above normal for a period that can extend 3-5 years.