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Credit Trends: Europe: Decline In Downgrade Ratio Fails To Provide Succor Jul 03 Product Image

Credit Trends: Europe: Decline In Downgrade Ratio Fails To Provide Succor Jul 03

  • ID: 1710774
  • July 2003
  • Region: Europe
  • Standard & Poors

Abstract
Even though the number of downgrades per upgrade declined in second-quarter 2003, there is not yet any clear-cut improvement in European credit quality. Credit quality among financial and nonfinancial businesses remains under pressure, constrained by a poor earnings environment, uncertainty, and tepid economic performance. Moreover, a previous frenzy of mergers and acquisitions has saddled European issuers with considerable debt, which they are unable to lower either by raising equity or by making asset sales. The growth differential between Europe-defined to include the industrialized countries of Western Europe-and the U.S. will persist, with GDP growing by approximately 1% in Europe compared with a 4% range in the U.S. The proportion of issuers with a negative bias-27% vs. 23% a year ago-attests...

Companies mentioned in this report are: Cable & Wireless Ltd.,Northumbrian Water Ltd.,Koninklijke Ahold N.V.,Gerling-Konzern Allgemeine Versicherungs-AG,Sol Melia S.A.,Invensys PLC,ABB Ltd.,HeidelbergCement AG,Rhodia,Tereos S.A.,ThyssenKrupp AG

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Cable & Wireless Ltd.,Northumbrian Water Ltd.,Koninklijke Ahold N.V.,Gerling-Konzern Allgemeine Versicherungs-AG,Sol Melia S.A.,Invensys PLC,ABB Ltd.,HeidelbergCement AG,Rhodia,Tereos S.A.,ThyssenKrupp AG

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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