In 2020, Argentina's regional governments face an increasingly challenging operating environment, characterized by national policy changes and rising social pressures that will undermine their financial results and ability to refinance debt.

Our stable outlook for the global asset management sector is supported by firms’ manageable debt burdens and margin resiliency, as well as sustained investor demand for higher-fee, higher-yield products. However, earnings growth remains a persistent challenge.

The outlook for EMEA non-financial corporates has turned negative from stable. We expect continued lacklustre economic growth combined with weaker demand in some key markets to weigh on companies’ performance. The default rate is likely to increase in 2020, but from a very low base.

Continuing economic growth, good insurance sector capitalization, and positive pricing trends support our stable outlook. Sector challenges include widespread losses from natural catastrophes, rising liability claims, and low yields on investments, all of which constrain profit margins.