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The uptick in EMEA CMBS issuance in recent months has seen heavier use of pro-rata principal allocation, which creates risks that can be disguised by prudent senior note-to-value ratios. Consequently, and as CMBS expands to include more operating assets, it becomes more important to look through headline leverage into the details of individual

Weakening capitalisation and profitability in recent years have started to challenge supranational institutions' credit profiles. We expect credit metrics to stabilise, but this will partly depend on shareholders' willingness to provide additional capital. 

The equity/total assets ratio of a sample of the major multilateral development banks (MDBs

Increased trade tensions have raised the risk that new measures may be taken that would have a much greater impact on global economic growth than those enacted so far.

The US investigation into auto tariffs, possible additional US tariffs on Chinese imports, and the likely reactions of other countries and blocs, point to a potential serious

Alaska's recent passage of the Permanent Fund (PF) Protection Act as a means for addressing ongoing projected budget gaps may result in the eventual depletion of the PF's Earnings Reserve (PFER). Avoiding that outcome will require more robust revenue growth than currently expected or other offsetting future state (Issuer Default Rating [IDR] 'AA'

There is a strong likelihood California's next governor will encounter recession, though the state is fundamentally better positioned to withstand the next inevitable economic downturn.

With Governor Jerry Brown's final budget now official and his second term nearing an end, California continues to benefit from strong economic growth in the midst

A regulatory shift towards loan-to-income (LTI) restrictions has contributed to the recent adjustment in Norwegian and Swedish house prices, Fitch Ratings says. Other factors that will influence the market include supply-demand fundamentals and income growth, but most importantly the eventual pace of interest rate rises. Danish mortgage borrowers

Despite U.S. healthcare defaults at a 16-year low, profits of some issuers are challenged.

"Payor consolidation and increasing scrutiny of both high cost drugs and care delivery settings are hurting healthcare profits," said Megan Neuburger, Managing Director. "Acute care hospitals and pharmaceutical manufacturers are most at risk."

Default rates

The Supreme Court ruling regarding the funding of public sector collective bargaining activities is not likely to have a meaningful effect on state and local government finances.

The ruling for the plaintiff in Janus vs. AFSCME Council 31 eliminates the requirement that non-union public sector employees pay "agency fees" to contribute to the cost

Fitch Ratings expects relatively stable commercial real estate fundamentals to drive strong investment results for U.S. life insurers over the next 12 to 24 months. Loss experience on life insurers' mortgage loan investments has been very favorable over the past year as evidenced by low credit impairments and a low percentage of troubled mortgages

The pace of asset purchases by the Bank of Japan (BOJ) has continued to slow sharply in 2018 to an annual rate of around JPY45 trillion (USD410 billion) despite the official commitment to annual purchases of around JPY80 trillion. 

While BOJ monetary policy remains extremely accommodative and the scale of asset purchases is still large, this