Debt Sustainability
The high debt loads amassed by governments and companies will raise repayment risks where growth and earnings prospects weaken. Low-rated corporate borrowers under liquidity or solvency stress may encounter increased credit challenges.
  • SUMMARY
  • REPORTS

  • SECTOR IN-DEPTH
    25 Nov 2021|Moody's Investors Service
    The downturn in China’s property market will slow the country’s GDP growth in 2022, with losses and defaults in the sector also raising credit risk for developers, creditors, banks, regional and local governments, and households. However, the government has the policy tools to limit large-scale spillover risk to the financial system.

    DATA REPORT
    09 Nov 2021|Moody's Investors Service
    Only four Moody’s-rated corporate issuers defaulted in October in a continuation of the slower default pace compared with a year ago. Two of the defaulters were from the Chinese property sector: Fantasia Holdings Group Co., Limited and Modern Land (China) Co., Limited.

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    Podcast
    19 Oct 2021|Moody's Investors Service
    Chief Credit Officer Richard Cantor and Marie Diron, of the Sovereign team, discuss how the pandemic crisis has accelerated the increase in government debt levels globally and what it means for the broader economy.

    SECTOR IN-DEPTH
    27 Sep 2021|Moody's Investors Service
    Bond markets in emerging market countries, as measured by percentage of GDP, have grown three times faster on average than have mature bond markets, reaching 80% of GDP in 2020 from 15% in 2000. Domestic bond markets are much larger than international bond markets and are expanding alongside bank lending, rather than replacing it.

    SECTOR IN-DEPTH
    07 Jun 2021|Moody's Investors Service
    Global debt rose by $32 trillion in 2020 and will continue to climb this year. The COVID-19 pandemic and its aftermath will challenge debt-servicing capacity in emerging markets. Advanced economies have more fiscal space, but will encounter debt sustainability challenges related to productivity and demographics.