We are changing our outlook for the US regulated utility industry to stable from negative. This is based on our expectations that regulation will remain largely supportive and that the sector’s consolidated funds from operations-to-debt ratio will stabilize at around 15% to 16% over the next 12 to 18 months.

Despite government measures to help reduce the depth and duration of India’s slowdown in economic growth, prolonged financial stress among rural households, weak job creation, and a credit crunch among non-bank financial institutions have increased the probability of a more entrenched slowdown. If nominal GDP growth does not return to higher rates, the government will face significant constraints in narrowing its budget deficit and preventing a rise in debt.

Miners with depleting coal reserves, license renewal risk or limited funding sources, particularly in light of creditor concerns over environmental risks, will face the most challenges.

Pressures at the sovereign level, particularly in Argentina and Turkey, had a meaningful impact on rating trends in global emerging markets over the past nine months. Downgrades outweighed upgrades across investment-grade and high-yield corporates.