The Chinese economy is embarking on a path of rebalancing, defined by a reorientation away from the export and investment-led development model towards a model where consumption gradually becomes a more important engine of growth. This process will be characterized by economic restructuring, policy reform, market liberalization, and credit deceleration, posing both opportunities and challenges for China's credit universe. This page provides a centralized source for Moody's research related to key credit issues in China as the country's rebalancing story unfolds.
On 16 March 2015, we updated our Bank rating Methodology, following which we placed around 40% of our bank deposit and senior unsecured debt ratings on review, as described in our 17 March 2015 press release.
The methodology contains new elements that we have devised to help more accurately predict bank failures and determine how each creditor class is likely to be treated when a bank fails and enters resolution. These new elements capture insights gained from the crisis and also take into account the fundamental shift in the banking industry and its regulation.
In addition to updating our bank rating methodology, we have also lowered our expectations about the likelihood of government support for European banks in light of the introduction of resolution frameworks with provisions for burden-sharing with senior creditors.
This page contains all of our rating action announcements and research related to the new Banks rating methodology or the removal of support in European bank ratings. For tutorials, videos and other background material on the methodology, please access the educational site.
Africa as a region has shown remarkable resilience in recent years: Despite the global financial crisis, tapering of global liquidity, and more recently softening emerging market demand, growth prospects on the continent remain robust amid large infrastructure projects, continuing reforms to improve the business climate, favourable demographics with an emerging middle class, and nascent domestic capital market development. However, chronic infrastructure bottlenecks, fiscal imbalances, political uncertainty and long-standing institutional weaknesses generally constrain credit quality throughout the region. With the recent and prospective entry of several African sovereigns, financial institutions and large corporations into international debt capital markets, increasing demand from investors for timely information regarding sovereign creditworthiness, banking system strength and the corporate operating environment has prompted this centralized source for Moody’s research related to key credit developments on the continent.
Global infrastructure financing needs are vast, estimated to be trillions of dollars annually for the foreseeable future. As governments around the world look to secure resources necessary to renew and expand their energy, transportation and other infrastructure assets, they will increasingly look to capital markets and private sector finance to ensure sufficient investment in these vital projects. This page provides a centralized source for Moody’s research related to key credit issues concerning these matters.
Since the euro area’s emergence from the global financial crisis in the second half of 2013, the region’s growth has remained subdued, reflecting continued large stocks of public debt, restrictive financing conditions and pre-existing long-term structural constraints (in particular poor demographic prospects). Given these obstacles, as well as the still incomplete nature of the euro area’s economic union, it is clear that the future growth model of the European Union and its core, the euro area, continues to faces challenges. This page provides a centralized source for Moody’s research related to key credit issues concerning these matters.
Progress toward a Banking Union for the euro area has multiple implications for bank credit, systemic risk and the health of the regional economy, to which banks are the primary providers of financing. In November 2014, the European Central Bank (ECB) will become the Single Supervisor for the euro area, directly responsible for the day-to-day supervision of more than 120 banking institutions. Meanwhile, political and technical discussions continue regarding a centralized bank resolution process for the region, which will likely include the “bail-in” of creditors. Two topics of particular interest in early 2014 are the Asset Quality Review (AQR) and subsequent Stress Tests to be conducted by the ECB, in coordination with national supervisors and the European Banking Authority, as part of a Comprehensive Assessment to help improve banks’ financial footing and restore market confidence. This page highlights key Moody’s research on the credit implications for Euro Area banks and their creditors.
Islamic finance is one of the most dynamic sectors of global finance. For this reason, Moody's remains strongly committed to supporting its growing importance. We provide market participants with a complete range of credit expertise and experience to meet the emerging needs in this field including ratings, research and training services.
Issuers in the fixed-income markets disclose material information about themselves and the securities they issue at the time of the initial offering and on a regular basis. Yet the rules pertaining to financial disclosure and ongoing reporting are complex and vary considerably by sector and geography, and at times this complexity can make financial analysis very difficult for investors. This page explores this topic in detail.
Investors have become increasingly concerned about event risk and the absence of meaningful covenant protections, which leaves them exposed to potential credit losses. Moody's covenant snapshots provide an informed opinion of covenant quality for both bonds and loans, helping you make better decisions and saving you time.
Moody's global macro-economic and financial risk analysis helps credit professionals to "put the pieces together" in order to develop a robust risk management/investment strategy by analyzing early trends, and by uncovering the linkages between the worlds of politics, economics and finance and their impact on credit.
The world's economies are adjusting to new positions in their historical growth cycles with varying and sometimes counter-intuitive implications for the credit markets. Improving rates of growth are generally credit positive; however, for some sectors such as US commercial mortgage-backed securities, the continuing rise of property prices combined with increasingly aggressive underwriting practices, both typical in an expanding economy, will have negative credit implications for newly issued transactions. Conversely, ongoing rebalancing in response to China's slower growth will benefit strategically important state-owned enterprises and consumer-focused sectors. For a global overview of next year's credit trends, please read Moody's 2015 Global Credit. For more detailed analysis, see the list below of all of Moody's 2015 Outlooks by region, country, and sector.
This site contains Moody’s Investors Service research on banking regulation and risk management across all geographical franchises. We endeavour to provide our subscribers with up to the date commentaries on the latest developments in banking regulation and what they mean for banks ratings. We also provide commentaries on evolving risk management and risk governance practices and their credit implications.
This page provides a centralized source for Moody’s publications related to the stress testing of financial institutions (banks and insurance companies) globally.
Moody’s offers Insurers a unique blend of capital management, credit expertise, data, market standard analytics and extensive industry practice. Building on our broadly based pool of credit risk specialists and industry practitioners, Moody’s can facilitate a richer understanding of the new regulations, advise insurers on how best to approach the challenges ahead and then support them along the process.
Concern over environmental change is leading to significant government policy initiatives globally and rising corporate innovation and investment. This heightened attention will lead to disruptive industry change, shifting investor capital allocation strategies and rising input costs related to increased pricing on carbon emissions and water usage. At the same time, severe environmental events, whether natural (earthquakes, hurricanes, droughts and floods) or man-made (oil spills and nuclear accidents), are of growing concern to many market participants who are concerned natural events are increasing in frequency and severity. This page highlights Moody's research on the credit implications of these developing environmental trends.