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Moody’s maintains US debt rating, but downgrades outlook

Bankinter | Moody’s has maintained its US debt rating, but worsened the outlook. The credit rating agency maintains the rating at AAA, but changes the outlook to “negative” from “stable”. In its report Moody’s refers to the worsening fiscal situation and the polarisation of politics as long-term concerns for the US economy. Assessment: Rising interest rates, the sharp increase in public debt and a polarised Congress that is unable to…

mercados emergentes

Moody’s HY default rate continues to rise (+0.2pp to 3.4% in May) and agency expects it to peak at 5% in 2Q24

Santander Corporate & Investment| Moody’s published on Thursday its monthly report where it announced that there were 16 defaults in May, matching the March figure which represented a monthly record since December 2020. This brings the balance for the first five months of the year to 62 defaults, with North America leading the way (42, more than double the 16 in the same period of 2022), followed by Europe (11),…

spain foreign policy

Moody’s Maintains Spain’s Credit Rating (Baa1) With Stable Outlook

Bankinter | The agency points to the resilience of the economy and public support in the pandemic. In the short term, it warns that the risk of “rising inflationary pressures and economic slowdown” prevail in an environment of high uncertainty. Moody’s projections for the Spanish economy are GDP +3.5% in 2022e, +1.6% in 2023e and +2% in 2024e. Average inflation of 8% in 2022e, +3.4% in 2023e and 2% in…

Current EU major challenges-Brexit and Italy budget- move but still remain stranded

The Cut In Spain’s Current Rating Could Lead To A Downgrade Of Over 50% Of Companies In 18 Months

Moody’s points out that Spanish public debt is at maximum levels for a century. Thus, it will take into account in its next rating reviews whether the Spanish government presents a credible plan to reverse the fiscal deterioration aggravated by Covid-19. A downgrade of the current rating (Baa1 with a stable outlook) could lead to the downgrade of more than 50% of Spain’s companies’ in 18 months. Even so, this warning is not exclusive to Spain (public debt/GDP 120%), as there are other countries with high debt problems (Italy 158%, Greece 200%, Portugal 137%).

Time for Spain to get a foreign policy

S&P Maintains Spain’s A Rating, Revises Outlook To Negative From Stable; Moodys Makes No Changes

Rating agency S&P has changed Spain’s rating outlook to “negative” due to the pandemic. While maintaining the country rating at “A,” the agency warns of the coronavirus’ strong impact on Spain’s economy. For this reason it has worsened its perspectives from “stable” to “negative.” S&P also justifies its decision on the possibility that an agreement will not be reached over next year’s budget. 

spanish companies

Moodys Threatens To Lower Rating For Over 50% Of Spanish Companies

Moody’s has warned that over half of Spain’s non-financial companies rated by the credit agency are at risk of being downgraded in the next 18 months. This is in light of the prospect that their solvency will continue to weaken, even after the government relaxes restrictions on mobility and travel and eases social distancing. In fact, the ratings agency highlights that between March and May 2020, it took 29 negative actions on the ratings of Spanish non-financial companies.

Spain ratings

S&P And Moody’s Confirm Their Sovereign Ratings For Spain At A (Stable Outlook) And Baa1, Respectively

S&P has revised Spain 2020 GDP downwards from +1.5% to -1.8%, rebounding +3.1% in 2021, +1.4% in 2022 and +1.5% in 2023. Meanwhile, estimates for the unemployment rate are 14.6% in 2020 compared to 14.1% in 2019, 15.6% in 2021, 15.2% in 2022 and 15.0% in 2023. For its part, Moody’s does not expand on this information; it merely confirms its ratings and outlook.

The UK: The City wants to take more risk

The UK: The City Wants To Take More Risk

The European leveraged financial markets have an increasing attraction for investors seeking more risk. According to data from Moody’s, the new volumes of issuance of European Collateralized Loan Obligations (CLOs), one of the main sources of demand for leveraged loans, stand at 6.4 billion euros in the year to date. At this rate, it will exceed the annual figure for 2017 of 18.8 billion euros, which was the highest in the last 10 years.