The European credit rating agency Scope Ratings has expanded its coverage to six companies listed in Germany’s leading index, the DAX. The first-time rating of the large automobile group Daimler AG strengthens Scope’s presence in another important sector.
Scope Ratings' aviation finance outlook for 2017 is stable. Aircraft lessors are helping to mitigate the risk in aviation finance, by preparing a soft landing for the industry once the current benign environment ends.
Scope’s European structured finance outlook for 2017 is stable. Modest economic growth and abundant liquidity will support the credit performance of European securitisations and covered bonds.
The end of the ECB’s purchase programme will unravel existing differences in credit quality across European covered bonds. Improvements in bank fundamentals and further harmonisation will remain supportive, but cannot conceal the products credit DNA.
Scope Ratings’ 2017 outlook for European banks, published today, highlights the various challenges still facing the sector, from structurally low profitability to political risk and competition from fintechs.