Italy’s government needs to devise and implement a credible, medium-term fiscal consolidation plan to stabilise public debt given the challenges of high interest costs, excessive past tax incentives, and delays in growth-enhancing recovery plan spending.

Bondholders in the Hungarian National Bank’s Bond Funding for Growth programme (‘NKP’) face a covenant-related credit challenge amid difficult domestic economic conditions, says Scope Ratings.

Scope Ratings requests comments on its Supranational Rating Methodology by 10 June 2024. The proposed changes to the methodology are not expected to have an impact on outstanding supranational ratings assigned by Scope.

Safety-related production problems at Boeing Co. are delaying the normalisation of the aviation finance sector, partly to the benefit of aircraft-leasing companies, as post-pandemic demand for air travel grows faster than the supply of aircraft.

May 16, 2024 15:30 (CEST)

Euro area governments unable to put in place consistent medium-term fiscal plans face credit-rating pressure even though reducing public borrowing is possible, including for highly indebted countries.

After five years of near-zero cumulative growth since the pandemic, Germany’s economic recovery is unlikely to accelerate without adequate policy reform and an increase in net investment, supported by its significant fiscal space.

A full-scale Middle-East conflict is unlikely but any further escalation of tensions would have significant adverse consequences for commodity markets and inflation, affirming geopolitical developments as a core credit challenge globally.

Europe’s real estate companies grapple with negative credit outlook; German banks look resilient despite CRE risks; bond market access is a differentiator for property companies; systemic risks are still high in European housing

Multiple bankruptcies in Germany’s automotive parts sector since mid-2023 are less a sign of a sector-wide crisis than the impact of a cyclical downturn and tight credit conditions on suppliers with financial and commercial weaknesses.