The credit quality of European corporate issuers is in long-term decline, according to Standard & Poor’s. The percentage of speculative-grade ratings in Europe was at a record high of 18% at the end of the second quarter this year, up from 8% in 1997.
Cheap borrowing and strong investor appetite for risk have been driving the trend, which is likely to endure, according to the agency’s report, ‘European Ratings Distribution: Rising Variation in Ratings Mix’.
The report envisages a similar situatio
The week on Risk.net, July 7-13, 2018Receive this by email