Higher rates will pressure European company, bank ratings: S&P
LONDON: Higher interest rates in Europe will put pressure on the credit ratings of the region’s companies and banks, S&P Global said on Tuesday. “The trend in credit quality is turning negative for corporates, especially for speculative-grade issuers, as financing conditions tighten,” the rating firm said in a new report. S&P Global launches ‘People First 10.0’ initiative “Real estate remains one of the most exposed sectors. For European banks, while asset quality deterioration will emerge, credit losses are expected to only normalize,” the report added. S&P forecast that European speculative-grade defaults will increase gradually and reach 3.75% by June 2024 from 3.4% in August.
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LONDON: Higher interest rates in Europe will put pressure on the credit ratings of the region’s companies and banks, S&P Global said on Tuesday.
“The trend in credit quality is turning negative for corporates, especially for speculative-grade issuers, as financing conditions tighten,” the rating firm said in a new report.
S&P Global launches ‘People First 10.0’ initiative
“Real estate remains one of the most exposed sectors. For European banks, while asset quality deterioration will emerge, credit losses are expected to only normalize,” the report added.
S&P forecast that European speculative-grade defaults will increase gradually and reach 3.75% by June 2024 from 3.4% in August.
