Aug 20, 2019

 
 
Please see below the most recent articles, rating updates and events from your S&P Global Ratings Corporate analysts. To access the full reports please click the article titles. We hope you find this summary of our latest thought-leadership valuable.

book_latest_research.pngLatest Publications From Our Corporate Analysts  

The fixed-income market's heightened focus on ESG has only emerged recently. However, ESG has been at the heart of our ratings approach for many years. We have long incorporated ESG considerations into our credit analysis. What we aim to do now is to more clearly underline to industry bodies, investors, and stakeholders how we do so. 

As part of this increased disclosure of ESG factors, we have recently published a series of ESG Industry Report Cards. Each report card will summarize the environmental, social, and governance (ESG) factors that are material to the credit ratings in that sector. Additionally, each report card will provide extracts of the ESG sections from our analyses of 20-50 companies. To view all the reports and additional research in the ESG space, please click here or click the links below to access the ESG Industry Report Cards directly:

We use our ESG Risk Atlas to rank the industries in terms of E and S exposure (see "The ESG Risk Atlas: Sector And Regional Rationales And Scores," published May 13, 2019). The Risk Atlas provides a relative ranking of industries in terms of exposure to environmental and social risks (and opportunities), together with our analysis of the most material E and S factors for each sector. The sector commentaries for the auto, transportation, and utilities report cards expand further on these factors by focusing on the credit-specific impacts, which in turn forms the basis for analyzing the exposures and opportunities of individual companies in the sector.

The trade dispute between China and the U.S. has reignited with an exchange of tariff impositions. On May 10, 2019, the U.S. raised the tariff rate to 25% from 10% on $200 billion of goods imported from China effective immediately, excluding goods-in-transit. On May 13, 2019, China responded by announcing four tiers of 25%, 20%, 10% and 5% tariff rates on $60 billion of goods imported from U.S. effective June 1, 2019. The same day the U.S. Trade Representative requested for public comments on a proposal to impose up to 25% duty on further imports from China valued around $300 billion. 


Spanish corporates are entering a period of decelerating economic growth in a position of relative strength. After suffering a severe economic crisis between 2008 and 2013, reforms have borne fruit in the form of a meaningful economic recovery since 2014. Following labor market and pension reforms, Spain has been able to improve its productivity significantly, diversify its industry, and develop a significant export-oriented economy. Since 2014, the Spanish economy has been expanding fast and it continues to do so faster than the average in Europe, propelled by solid internal demand and boosted by a substantial reduction in household debt and cheap cost of funding for corporates. 


dartboard_rating_actions.pngRecent Rating Actions
For more information visit Ratings Actions


Next Debt Crisis: Will Liquidity Hold?
Will the next financial crisis be as bad as 2008-2009? Global debt is certainly higher and in many cases riskier than a decade ago. Nonetheless, the likelihood of a widespread investor exodus is contained, in S&P Global Ratings’ view. The increased debt is largely driven by advanced-economy sovereign borrowing and domestic-funded Chinese companies, thus mitigating contagion risk.

CLOs Uncovered Podcast - Episode 2
In this latest episode, Hina Shoeb and Sandeep Chana have a guest speaker- David Gillmor who gives a flavour on when the cycle turns, how low would the European Recovery Rates go. They also discuss TelePizza’s preliminary rating of B with a stable outlook.

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For more information on our upcoming events and replays, please visit Webcasts and Events.

For access to more of our research and insights, please visit our dedicated Global Corporate Research webpage. If you have any questions regarding the reports included in this email, or would like to get in touch with one of our analysts, please contact us

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Kind regards,
Gregg Lemos-Stein
Head of Analytics & Research
Corporate Ratings
S&P Global Ratings

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