Scope’s ESG Performance Score captures the three dimensions of a company’s sustainability by combining impact and risk assessment with strategy analysis in a newly comprehensive approach applicable to any firm, large or small.

Within two months, most European banks will be subject to final Basel 3 standards aimed at strengthening the resilience and stability of banks. We do not expect further major changes to the regulatory framework although there are likely to be refinements.

Italy aims to accelerate fiscal tightening to exit the excessive deficit procedure earlier than expected, but high public debt, structural economic weaknesses and unfavourable demographics pose challenges to the medium-term outlook.

Seasonal factors dragged August collections down 54% month-on-month, a new low since this report started to be published in 2020. A similar pattern has been observed in previous years but to a lesser extent (-35% in 2023, -38% in 2022).

The consolidated non-performing loan (NPL) ratio of EU banks remained stable at a low level of 1.86% in the second quarter despite a rise in total NPLs to EUR 373.4bn, reflecting underlying volume growth.

Germany is facing severe demographic challenges with more acute structural pressures than other advanced economies. Labour-market and pension reforms are essential, but fragmented politics risks eroding the country’s competitiveness.

The US and global economies remain resilient ahead of forthcoming US elections. However, Europe’s economic fragility poses challenges for credit despite support from the easing of interest rates.

Only six of the 20 loans in European CMBS that were scheduled to refinance this year have been repaid or refinanced. Nine were modified and three were extended. Meanwhile, two thirds of the loans still fail bank lenders’ refinancing requirements.

Scope’s new structured finance rated volume grew by 17.4% in the year to June 2024. Monitoring reviews resulted in more upgrades than downgrades over the period, resulting in positive ratings drift for the first time since the third quarter of 2022.

Tuesday, October 15th 2024 - 3:00 PM (CEST)