S&P Global Ratings has published its inaugural edition of U.S Corporate Insights – answering the questions on investors’ mind regarding the latest corporate credit trends, such as: how are looming trade wars and higher debt levels affecting appetite? And, as we near the latter stages of the credit cycle, is the current state of play one of peak, plateau, or peril?
The edition also provides sector views from S&P Global Ratings analysts on oil and gas, autos, real estate, and media and telecoms.
Read the latest edition here
Moorgate compiles, edits and designs U.S Corporate Insights
Investors are increasingly interested in the ESG risk attributes of their portfolios. Writing for GreenBiz, Jessica Williams and Noemie de la Gorce, Analysts at S&P Global Ratings, consider the environmental and social risks that have had a material impact on credit ratings since 2015.
To read the full article please click here.
In light of the UN’s High-level Political Forum on Sustainable Development, ICC United Kingdom Secretary General Chris Southworth, talks to Michael Wilkins, Head of Sustainable Finance, S&P Global Ratings, about how the public and private sectors are enabling sustainable finance, the UN’s sustainable development goals (SDGs) and resilient societies.
To listen to the full podcast click here.
Following Global Credit Data’s recent Loss Given Default (LGD) report, Nina Brumma, Head of Research and Analytics at Global Credit Data, explores what happens when a corporate defaults and how banks can manage the risk in Global Banking & Finance Review.
Despite a slow but steady remission from the global economic crisis at the end of the last decade, global debt has reached a record-breaking $237 trillion. As a result, the International Monetary Fund (IMF) voiced concern in its latest Global Financial Stability Report, stating, “the prolonged period of loose financial conditions in recent years has raised concerns that financial intermediaries and investors … may have extended too much credit to risky borrowers.”
This serves as a warning to banks and corporates, asking them to consider the consequences of corporates beginning to default on their debts. Especially with less familiar or riskier borrowers, it is therefore essential for financial institutions to seek collateral for their loans, and for the debt to take seniority if the borrowing body defaults. This maximizes the chances of a near-full recovery in the case of a default.
This said, Global Credit Data’s recent LGD report, which compiles statistics from over 50 member banks since 2000, reveals that, on average, banks recover 75% of defaulted corporate debt. And given that defaulted debt accounts for just 1% of the average bank’s loan book, it means banks recover a total of 99.75% of all corporate debt – before factoring in profit from interest payments and coupons. If a company has taken the right precautions, a bank can feel comfortable in a climate of low LGD.
For more information, read the full article here and the full report here.
With ongoing advances in sustainability, the risk of being unable to monetise carbon assets grows by the day. A new book from Routledge, Stranded Assets and the Environment: Risk, Resilience and Opportunity, explores the ramifications of asset stranding across various sectors of the global economy.
Mike Wilkins, Head of Sustainable Finance at S&P Global Ratings, supplies chapter 8, drawing on research and real-world corporate case studies to focus on the credit implications of stranded assets.
Michael Duval, the Bank’s Chief Business Officer, explains in a targeted article why companies are choosing Israel for their importing and exporting activity.
“Are companies worrying about climate change?” Bizz Energy asks Michael Wilkins, Head of Sustainable Finance at S&P Global Ratings. While acknowledging that it is difficult to draw concrete conclusions at this stage, Michael spoke of a recent trend in global corporate ratings that could indicate that corporates are beginning to manage some forms of E&C risk.
Read the full article here (in German).
On 17 April 2018, S&P Global Ratings marked the launch of its Sustainable Finance team. At a reception in central London, the team, which includes members from North America, hosted specialist and tier one agencies.
The Sustainable Finance Team is a cross-practice, dedicated team of S&P Global Ratings analysts who cover environmental, social and governance (ESG) analytics and research, insight into sustainable infrastructure trends worldwide, and the S&P Global Ratings Green Evaluation – an asset-level environmental credential, launched in early 2017.
Moorgate worked with the communications team at S&P Global in arranging the event, including invitation attendance, content for distribution, and all venue logistics.
To see the new S&P Global Ratings Sustainable Finance website, please click here.
As the damages resulting from global weather trends compound year by year, international credit markets have begun to take climate change more seriously, write Michael Wilkins, Head of Sustainable Finance, and Peter Kernan, Managing Director, S&P Global Ratings.
The article describes how environmental and climate (E&C) risks—as well as opportunities—may affect an entity’s capacity and willingness to meet its financial commitments, along with case studies and a description of S&P Global Ratings’ methodology.
Read the full article here. (note: behind a paywall)
In the wake of severe weather events – for example, 2017’s particularly destructive Atlantic hurricane season – climate-related risk is rising on the global agenda. In light of this, lenders and institutional investors are increasingly interested in how S&P Global Ratings incorporates environmental, social and governance (ESG) risks and opportunities into its insurer credit ratings analysis.
In a Q&A for YouTalk Insurance, Mark Button, Senior Director, S&P Global Ratings, describes the nature of ESG risks and how they factor into S&P’s insurer credit methodology.
To read the full piece, please click here.