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KBRA Releases Research: Sovereign Credit Risk—Taking Stock Mid-Pandemic

·2 min read

Kroll Bond Rating Agency (KBRA) releases a report which examines sovereign risk one year after the onset of the pandemic. In KBRA’s view, sovereign credit quality has displayed a relatively strong degree of resilience amid exceptionally extreme circumstances. Ultimately, sovereign credit quality will depend on the speed (and prospects) of economic life returning to more normal (i.e., closer to pre-pandemic) behavior, as well as the flexibility of government finances to manage permanent COVID-related economic scarring and larger (and unprecedented) fiscal debt loads. For several sovereigns, crisis conditions have spurred critical reforms that will facilitate macro improvements.

Key Takeaways

  • Sovereign credit has been more resilient than expected.

  • Institutional reforms—and the support this provides to countries’ growth outlooks—may help stem downward credit pressure.

  • Populism surge may have reached its limits.

Click here to view the report.

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210201005942/en/

Contacts

Analytical Contacts

Joan Feldbaum-Vidra, Managing Director, Sovereigns
+1 (646) 731-2362
jfeldbaumvidra@kbra.com

William Cox, Global Head of Corporate, Financial, and Government Ratings
+1 (646) 731-2472
wcox@kbra.com

Business Development Contact

Mauricio Noé, Senior Managing Director and Head of Europe
+44 777 193 6570
mnoe@kbra.com