Oddbean

Shaky markets won't dent credit quality: DBRS ========== Recent turmoil in global stock markets is unlikely to have a significant impact on credit quality, according to rating agency Morningstar DBRS. The agency expects the effects of increased market volatility to be limited and primarily affect weaker, low-rated companies. Consumer spending may be pressured by deteriorating labor market conditions and declining wealth effects. Certain issuers may have difficulty accessing capital as investors shift to safer investment-grade debt. However, DBRS maintains a cautiously optimistic outlook for the macroeconomic environment in North America and Europe, with credit rating outlooks remaining generally stable. Investment-grade corporate issuers with robust capital and liquidity positions are expected to benefit from geographic diversification, economies of scale, and market positions. Companies in stable sectors such as utilities, telecommunications, pipelines, and food retail are better positioned to withstand market headwinds, while companies in cyclical or discretionary sectors may be more impacted by weaker consumer spending. #CreditQuality #StockMarkets #Volatility #ConsumerSpending #Investmentgrade #MacroeconomicOutlook https://www.investmentexecutive.com/news/research-and-markets/shaky-markets-wont-dent-credit-quality-dbrs/