Southern European Corporates Face Little Risk of Sovereign Contagion

Research Recap submits: But a prolonged intensification of sovereign risk concerns, ushering in an era of “new austerity,” and ultimately a double-dip recession, could lead to a reversal of the rating stabilisation seen for EMEA region corporate bonds.

Research Recap submits: Fitch Ratings says the downside risk remains high for Greek public finances despite the approval of the EUR110bn IMF-EU financial support program designed to restore public debt sustainability by 2014.

Research Recap submits: Moody’s does not appear to be overly concerned about immediate liquidity risk faced by Southern European sovereign debt.

Research Recap submits: Fitch’s rating outlook for the U.S. banking sector remains negative, although many of the factors that put negative pressure on ratings are easing. We are pleased to offer a complimentary download of Fitch’s latest US Banking Quarterly, which includes individual comments on the top 24 banks rated by Fitch.

Moody's ratings agency on Thursday warned that the fallout from the Greek debt crisis presented a risk of "contagion" for the credit rating of banks in Britain, Ireland, Italy, Portugal and Spain.Moody's said in a report that "the potential contagion of sovereign risks to banking systems could spread to other countries such as Portugal, Spain, Italy, as well as Ireland and the UK."It said the banking systems therefore faced "very real, common threats."

Moody's ratings agency warns that the fallout from the Greek debt crisis presented a risk of "contagion" for the credit rating of banks in Britain, Ireland, Italy, Portugal and Spain.

Research Recap submits: Fitch Ratings suggests that the US and the UK need to cut their primary budget deficits by 6-7 percentage points of GDP to be sure of maintaining their AAA sovereign debt ratings.

Research Recap submits: In the absence of sustained economic recovery and fiscal consolidation, Japan’s government debt will continue to rise, placing downwards pressure on sovereign credit and ratings over the medium term, according to Fitch Ratings.