Sovereigns – Central and Eastern Europe: Most credit profiles resilient to a transient coronavirus shock
28 May 2020|Moody's Investors Service
We expect most sovereign credit profiles in Central and Eastern Europe will be resilient to the short-term shock to growth and fiscal metrics from the coronavirus outbreak. Policy responses provide some protection for economies, but will increase debt. Governments who fail to present credible strategies to repair balance sheets will likely face credit pressure.
27 May 2020
Lucie Villa of the Sovereign team discusses a debt relief initiative for low-income countries grappling with liquidity pressures. Also, Daniela Jayesuria of the Structured Finance team offers insights on coronavirus-related debt moratoriums for individual and corporate borrowers in Latin America, one of the biggest securitization markets in emerging markets.
25 May 2020|Moody's Investors Service
On 20 May, the Bank of Italy provided an update on payment holidays for households and small and midsize enterprises (SMEs), and banks' origination of state-guaranteed loans to corporates. Italian banks' increased supply of corporate loans is credit positive because it will help mitigate Italy’s economic downturn, partially protecting banks' asset quality.
26 May 2020|Moody's Investors Service
On 8 May 2020, the European Commission confirmed that the shareholders and subordinated creditors of banks that receive public support to help them withstand coronavirus-related pressures will not be required to bear losses through write-down or conversion to equity, as would normally be the case under European Union state aid rules.
Sovereigns – Global: G-20 debt service freeze supports liquidity, high debt level challenges will intensify
18 May 2020|Moody's Investors Service
The G-20 Debt Service Suspension Initiative (DSSI) announced on 15 April will free up resources for coronavirus-related spending, but at this stage is unlikely to ease the significant credit challenges that have been amplified by the coronavirus outbreak.
Supranational issuers – Global: FAQ on MDB credit quality in the context of the coronavirus outbreak
13 May 2020|Moody's Investors Service
Multilateral developments banks (MDBs) play an important role in mitigating the economic and financial impact of the coronavirus pandemic on their borrowers. This report looks how MDB's responses to support vulnerable borrowers during the pandemic and the G-20 debt-relief initiatives may impact their credit metrics.
07 May 2020|Moody's Investors Service
Major Latin American economies have put in place coronavirus support measures that include cash payments to low-income households, liquidity support for businesses and tax deferrals. But this support will not offset the rising recessionary momentum in the region or credit risks for most sectors.
29 Apr 2020|Moody's Investors Service
Fiscal and monetary authorities are increasingly stepping up the level of support to their respective economies. Fiscal measures include immediate support to households in the form of tax relief and transfers, credit lines and subsidies to businesses and explicit government guarantees on bank loans.
Macroeconomics – US: Small business struggles will persist despite added support, a risk to jobs and growth
27 Apr 2020|Moody's Investors Service
On 23 April, the US Congress approved a coronavirus relief measure that will inject an additional $320 billion into the Paycheck Protection Program (PPP), a loan fund for small and midsize enterprises (SMEs) that exhausted its initial $349 billion in funding within two weeks of the program’s launch.