| Sovereign Debt Problems Weigh On A Mostly Tepid Forecast, According To 2012 Global Credit Outlook |
| 14.12.11 19:01 | |
|
NEW YORK, Dec. 14, 2011--Standard & Poor's Ratings Services published an article in which Standard & Poor's economists and senior analysts addressed questions about what 2012 might hold in store for credit markets in various sectors. The report is titled "2012 Global Credit Outlook: Sovereign Debt Problems Weigh On A Mostly Tepid Forecast." In discussing the prospects for credit quality across a spectrum of securities, Standard & Poor's economists and analytical managers identified the major issues they believe global credit markets will face in 2012. They are: A mild economic recovery is likely to continue in the U.S., while a mild recession is likely to persist in Europe. However, a failure to address sovereign debt problems in Europe and the U.S. could lead to a more pronounced downturn. Housing, employment, and consumer confidence remain the areas of greatest concern for developed economies. The economic outlook for emerging markets is more benign, with growth likely to be solid but not as pronounced as in recent years. The global banking system is likely to continue to be in a difficult position, in large part because of uncertainty over sovereign debt and financial regulation, anemic growth in developed markets, and a U.S. housing market that seems to still be a long way from rebounding. U.S. nonfinancial corporate issuers are likely to experience a balance between positive and negative rating actions, absent a significant market disruption. U.S. state and local governments will look to continue their efforts to align expenditures with resources, and for those that take a proactive approach, credit quality is likely to remain stable. Structured finance issuance will probably be tepid with a few relative bright spots, and 2012 activity is unlikely to pick up much from 2011 or come anywhere close to peak year issuance. |
| < Prev | Next > |
|---|