Global Ratings Outlook Weaker Than Last Year

Global Ratings Outlook Weaker Than Last Year

The negative outlook bias is 10% for corporates and 11% for banks. For the former, the industries facing the strongest headwind include natural resources and traditional retail. The expected boost to US economic growth would be positive for corporates but the increased likelihood of rising interest rates is not. In contrast, financial institutions stand ready to benefit from rising rates which should allow a widening of their net interest margin. In Europe, banks face still slow economic growth and high NPLs in some countries (notably Italy and Portugal). Low rates remain a challenge for earnings but with the upside of limiting impairment charges. The more bearish rating outlook contrasts with our more optimistic outlook for global economic growth in 2017. We forecast a rise to 2.9% from 2.5% last year due to a recovery in US investment, a broad easing of developed market fiscal policy and recessions ending in Brazil and Russia. The Eurozone and China are important exceptions, with growth reducing to 1.4% (from 1.6%) and 6.4% (from 6.7%) respectively. Source/ More On: Fitch Ratings outlook Oil and Gas Press Oil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook Disclaimer Most News articles reported on OilAndGasPress are a reflection of what is published in the media. OilAndGasPress is not in a position to verify the accuracy of daily news articles ]]>

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