Our Scans · (FS.7.05) Rating Agencies · Weekly Summary

• Default would result in the U.S. government becoming a credit risk, higher interest rates, and increased borrowing costs for everyone. National Council of Nonprofits
• Geopolitical risks will be a key component of the 2025 EU-wide stress test, which will include exploratory scenario analysis assessing banks' ability to model counterparty credit risk while under stress. European Central Bank - Banking Supervision
• In addition to maintaining the fed funds rate, the FOMC will continue its reduction of Treasury securities, mortgage-backed securities and agency debt. Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports
• In addition to cutting the fed funds rate by 25 basis points, the FOMC will continue reducing its holdings of Treasury securities, mortgage-backed securities and agency debt. Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports
• Moody's Ratings and other global agencies have flagged geopolitical tensions, including India-Pakistan conflicts, as downside risks to India's economic growth forecasts, currently trimmed to 6.3% for 2025. Moneycontrol
• Financial uncertainty is compounded by macroeconomic factors that increase trade and credit risk, including the tariffs imposed by the United States and threats of another recession in the UK. Finance Monthly
• Treasury bonds tend to offer the best hedge for stocks among traditional bond sectors, while TIPS benefit from nearly no credit risk and a hedge against rising prices. Morningstar, Inc.
• The global credit rating agency, Fitch Ratings, recently upgraded its credit rating of Nigeria to B. Fitch said that the economic reforms have improved policy credibility and reduced near-term risks to macroeconomic stability. Businessday NG
• As a broad Treasury repurchase financing rate based on transactions secured by U.S. Treasury securities, it does not measure bank-specific credit risk and, as a result, is less likely to correlate with the unsecured short-term funding costs of banks. Walmart Inc.
• Hyundai E & C has been recognized for its outstanding ESG performance by global rating agencies, having become the first listed construction company in Korea to declare a carbon neutrality strategy with its 2045 Carbon Neutrality commitment. MarketScreener
• The FPC agreed that shortening the UK securities settlement cycle to T + 1 would bring financial stability benefits from reduced counterparty credit risk in financial markets. Global Regulation Tomorrow
• Borrowing costs could rise as investors demand a higher premium to hold Chinese debt, especially if other rating agencies follow suit. Ainvest
• Banks can no longer take decisions relating to liquidity, capital or credit risk in isolation. Cision PR Newswire
• In the US the spread between safer Treasury bond yields and riskier high yield bond yields is narrow (highlighting that investors are demanding a smaller premium for holding bonds with higher credit risk), presently sitting just above 2.6%. Watson French Wealth Management
• Artificial intelligence is expected to play a crucial role in the strategies of financial services firms for credit risk decisioning and fraud prevention by 2025. B2Bdaily.com
• Artificial intelligence is set to play a significant role as many financial services firms revamp their credit risk decisioning and fraud prevention strategies in the coming year. The Fintech Times
• In a note, the rating agency expects demand for Islamic finance to remain robust in 2025, supported by sustained economic momentum and ambitious development agendas in core Islamic markets. BusinessToday
• Perhaps the most contentious issue related to debt sustainability discussions are credit rating agencies-for-profit institutions that are also primarily based in the Global North, which produce assessments of credit risks that affect developing countries' ability to attract private capital. IISD Earth Negotiations Bulletin
• The American credit rating agency anticipated a steady economic growth to continue in the UAE: As hydrocarbon production picks up, we anticipate that real GDP growth will remain strong in 2025-2027, further supported by buoyant non-hydrocarbon activity. Emirates24|7
• In terms of ESG ratings, Linklogis was graded as Low Risk by Sustainalytics, an authoritative ESG rating agency under Morningstar, ranking in the top 5% of the global software and services industry. Linklogis
• Uzbekistan's potential comes with inherent risks, including regulatory changes, currency volatility, and credit risks associated with the growing private credit share of GDP. KILDE

Last updated: 26 June 2025