Moody’s: European credit quality decline slowing, but no upturn expected
The decline of credit quality in western Europe slowed over the first quarter of 2007 due to strong economic growth especially in the financial sector, but an upturn in the credit cycle is not in sight this year, according to a report by Moody’s Investors Service.
Marcus Schüler, head of integrated credit marketing at Deutsche Bank in London, was surprised by the report’s findings. He said: “Recently falling default rates have reached zero in speculative grade issuance, so people in the market are saying credit quality is very good.”
The outlook for the rest of the year is less positive, according to the report. Higher interest rates and inflation point to financial market uncertainty, and Moody's expects default rates to rise over the rest of 2007, with downgrades outnumbering upgrades until the third quarter, and little improvement in sight for credit quality for the next eight to 12 months.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net