Sharon Ou, a Vice President in the Credit Strategy and Standards Group, and Joyce Jiang, an Associate Analyst in the group, discuss the credit performance and default rates of nonfinancial companies in emerging markets. In addition to firm-specific factors, developments at the country level affect emerging market corporate default rates. Amid rising credit challenges, countries with structural weakness and less-strong financial metrics in the corporate sector will show greater vulnerability.
Moody’s Analytics performs annual stress tests on state government budgets - estimating the amount of fiscal stress likely to be applied to state budgets under different recession scenarios and comparing that to what states have in reserve. This year’s exercise also looks at how economic stress translates to public pensions.
Naomi Richman, Senior Vice President in the US Public Finance group, and Alexandra Parker, Managing Director in US Public Finance, discuss the credit implications of fixed costs — debt service, pensions and retiree healthcare — on state and local governments.