Mexico’s policy framework is weakening, with potential negative implications for credit quality for some sectors. The uncertain operating environment has undermined investor confidence in PEMEX, the national oil company, and infrastructure project debt. Some sectors, including most residential mortgage-backed securities and banks, have ingrained stability that will help support credit quality.

The US Federal Reserve is likely to resort to unconventional policy tools more frequently, as the low neutral interest rate environment becomes the new normal for the US economy.

Despite its moderate debt burden relative to peers, Turkey’s significant dependence on external capital flows and its weak foreign-exchange reserve buffers render the government highly vulnerable to a prolonged period of acute economic and financial volatility. These challenges in turn constrain Turkey’s ability to service its debt and raise the risk of a government default.

With high levels of cash and moderate financial leverage for their ratings, investment-grade drug makers have good capacity for acquisitions. Reduced pricing flexibility, regulatory threats and upcoming patent cliffs will continue to drive M&A strategies.