Fitch's Inside Credit: European Sovereigns In Focus
The eurozone's increased GDP during second-quarter 2015 is consistent with Fitch's view that the single-currency area's short-term macroeconomic outlook has improved. However, medium-term growth prospects are generally weak, which will constrain sovereign ratings.
"Despite the bloc's better macroeconomic short-term outlook, we have taken more negative than positive rating actions on eurozone sovereigns in recent months, with weak actual or potential growth, or deteriorating fiscal metrics a contributing factor in several cases," says Gergely Kiss, Director of Sovereigns.
Separately, on Aug. 18, 2015, Fitch upgraded Greece to 'CCC' from 'CC' as the result of the country's agreement with the European Institutions for a third bailout program, which has reduced the risk of Greece defaulting on its private-sector debt obligations.
Other topics covered in this week's edition of Inside Credit include:
- Global AT1 Issuance Suggests Demand Set to Remain Strong
- EMEA Banks Chart of the Month - Weak Rouble Adds Pressure on Russian Banks' Credit Profiles
- China's Capital Injections Boost Support for Policy Banks and Economy
- U.S. Card Issuers Swiping Back at Many Sector Headwinds
- Latin American Corporates Under Pressure
- Tianjin Explosion Insurance Losses Likely to Be Material
- Tenge Devaluation Likely to Hurt Kazakh Banks' Asset Quality
- U.S Trust Bank Earnings to Rise with Short-Term Rates
- Canada Affirmed at 'AAA'
- The Why? Forum: Why U.S. Supermarkets Are Under Pressure
- Fitch to Host Global Sovereign Conference in September
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