trending Market Intelligence /marketintelligence/en/news-insights/trending/AbatUOGfmfRNzUTpDgJeXQ2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Moody's cuts 2020 outlook for EMEA corporates to negative

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments


Moody's cuts 2020 outlook for EMEA corporates to negative

Moody's said the 2020 outlook for nonfinancial corporates in Europe, the Middle East and Africa has changed to negative from stable, as persistent lackluster growth among major European economies and weaker demand in key markets put pressure on the performance of companies across the region.

In its annual EMEA corporate outlook report, Moody's pointed out that negative ratings outlooks among companies in the region outnumber positive outlooks by about 3 to 1, suggesting that more negative than positive corporate ratings actions are likely within the next 12 to 18 months.

Moreover, most EMEA-specific sector outlooks are negative in 2019, with the telecoms, auto parts, gaming, retail and steel industries expected to register industrywide slowdowns in revenues.

Companies in the region have access to low interest rates and enjoy generally good liquidity, but Moody's expects corporate defaults to rise amid a generally weak earnings outlook.

Moody's noted that slowing economic activity will affect earnings in key markets, with eurozone GDP growth expected to remain weak at 1.2% in 2020. The automotive and manufacturing sectors would also feel the pinch of a further slowdown in both the U.S. and China.

Trade tensions between the U.S. and China, while negative for the global economy, could divert some trade to EMEA countries. However, companies in the region would be more affected by any escalation in the trade dispute between the EU and the U.S., with tariffs expected on commercial aircraft and consumer goods.

Brexit uncertainty also weighs on investment decisions, but has had limited credit impact so far, Moody's said.

The rating agency noted that EMEA is not a homogeneous area, adding that the region's negative corporate outlook is generally driven by economic and geopolitical risks in the EU, Gulf countries, Turkey and South Africa. Some countries, such as Russia, have stable credit outlooks.