S&P says subprime losses to peak only in 2009

The U.S. subprime housing crisis will not peak until 2009 and total defaults could reach $150 billion, rating agency Standard and Poor's said on Tuesday, but robust emerging markets would help keep global growth strong.

S&P expected the world economy to grow 3.6 percent in 2007 and 3.5 percent in 2008. The U.S. economy would lag at 2 percent in both years, down from 2.9 percent in 2006.

"World growth remains strong despite the weaknesses seen in the U.S. economy -- especially in emerging markets because of healthy domestic demand conditions and export strength to non-
U.S. market," S&P said in a report released in Mumbai.

"The fact that the U.S. slowdown is concentrated in housing, which has relatively low import content, helps," it said.

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