Fitch Ratings following up from their Evergrande downgrade further warned a credit event could result in contagion and headwinds. Fitch cut the ratings of China Evergrande Group and two of its subsidiaries last Wednesday
Ahead of Wednesday’s FOMC Fitch Ratings said a faster-than-expected global economic recovery is boosting prices as supply chains have struggled to keep up. However slower growth, supply adjustments in bottleneck sectors, a switch back towards services consumption, and fading impacts from US fiscal stimulus should see inflation decline in 2022.
Fitch Ratings on Monday in a note on the forthcoming U.S. election looked at the implications for policy. Two of the potential outcomes are most relevant for credit, a “status quo” result or Biden becoming President and Democrats winning Senate and Congress.
Fitch issued a note on Uruguay after the narrow victory of Luis Lacalle Pou of the center-right National Party after 15 years of rule by the center-left Frente Amplio. Pou faces the challenge of reducing a large fiscal deficit in the face of low growth.
Fitch Ratings is out with a note lowering its outlook on Japanese insurers. They lowered their rating to stable from positive. See biggest risks for Japanese insurers will continue to stem from financial markets in 2020.
Fitch expect 2019 Australian GDP growth of 2.0%, lowest since 2008-2009 global financial crisis. Last October the rating agency affirmed Australia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘AAA’ with a stable outlook as did S&P Global Ratings from ‘negative’.
Fitch Ratings issued a note following the resignation of UK Prime Minister Theresa May and the strong showing by the Brexit Party in European Parliamentary elections. They opined this increases the risk of a no-deal Brexit with uncertain timing.
Rating agency Fitch affirmed Australia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘AAA’ with a stable outlook. Last month Australia’s AAA sovereign rating was affirmed by S&P Global Ratings and the outlook was revised up to ‘stable’ from ‘negative’.