Our periodic roundup of key takeaways from our articles brings together all of S&P Global Ratings’ coronavirus-related research—including our regularly updated list of rating actions we have taken globally on corporations, sovereigns, and project finance.
Private Debt: A Lesser-Known Corner Of Finance Finds The Spotlight
The private debt market has grown tenfold in the past decade with assets under management of funds primarily involved in direct lending surging to $412 billion at end-2020—spurred in part by investors’ search for higher yield.
Published October 19, 2021
Low default rates persist despite record levels of 'CCC' ratings.The initial credit shock of the COVID-19 pandemic on the most vulnerable issuers was severe and fast, as the proportion of issuers rated 'CCC' and below ballooned to record highs. Most of the issuers downgraded at the beginning of the pandemic were seriously affected by health measures and social distancing protocols as both governments and societies responded to the global crisis. Despite the number of 'CCC' issuers spiking to record levels, speculative-grade default rates have not, peaking at half their levels seen in the 2008 financial crisis and then dropping rapidly.
Credit Trends: 'BBB' Pulse: M&A Rebound Could Put The Corporate Credit Recovery On The Back Burner
Mergers and acquisitions (M&A) are on the rise. With plentiful cash on hand and abundant financing opportunities, 'BBB' issuers in the U.S. and in Europe, the Middle East, and Africa (EMEA) could contribute to an increasing pace of deal-making.
Global Credit Conditions Q4 2021: Supply Chain Strain, Inflation Pain
Broadly, credit quality is continuing to recover slowly from a lower base as the global economy rebounds from the pandemic shock.
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Published September 28, 2021
COVID-19 continues to play a central role in global economic activity. In economies where the delta variant has surged in recent months--the U.S. and Southeast Asia in particular--mobility and confidence have declined and growth has slowed. This has happened despite rising vaccination rates in some cases. In contrast, in economies where the spread of the virus has been contained or where tolerance for infections has risen, such as Europe and non-Asia emerging markets, the pace of activity has remained strong.
Another pandemic-related development has been economies' adaptation to the virus. Specifically, economic agents are learning to live with mobility restrictions put in place by governments to combat the spread of COVID-19. Charts 2a and 2b show this trend, with the change in mobility plotted on the horizontal axis against the consumption gap on the vertical axis, both measured against their pre-COVID-19 levels.
Economic Outlook U.S. Q4 2021: The Rocket Is Leveling Off
The U.S. economy has cooled somewhat but remains resilient, leading S&P Global Economics to revise our forecasts of real GDP growth for 2021 and 2022 to 5.7% and 4.1%, respectively, from 6.7% and 3.7% in our June report.
Asia-Pacific Q4 2021 Outlook: Growth Slows On COVID-19 And Rising China Uncertainty
New daily COVID-19 cases remain high in several parts of Asia-Pacific. This has prompted authorities in some jurisdictions to enforce new lockdowns.
Published October 5, 2021
S&P Global Ratings is planning a number of initiatives about how we assess environmental, social, and governance (ESG) factors across all sectors globally. Here, as part of our commitment to transparent communications, we lay out our plans, the indicative timeline, and reminders about key concepts--such as how ESG factors influence creditworthiness, the importance of materiality, as well as where to find our views about an entity's ability to manage ESG risks and opportunities.
ESG Credit Indicator Definitions And Application
Following our recently published methodology on environmental, social, and governance (ESG) principles in credit ratings we intend to provide additional disclosure and transparency by applying ESG Credit Indicators to publicly rated entities.
Climate Change Litigation: The Case For Better Disclosure And Targets
The volume of climate change-related litigation against companies and governments worldwide appears to be growing. Climate change attribution science is strengthening and could increasingly contribute to judgments against heavy emitters.