Search
 

Credit Quality of Foreign Companies Continues to Improve; US Firms Still Lag

NEW YORK CITY-Moody's concludes that a cautious outlook for the global economy is warranted over the next year due to a less plentiful supply of financial capital and poor stock price performance.

By John Howe | Updated on November 06, 2000

NEW YORK CITY-The credit quality of companies in Europe, Latin America and Asia improved for the fifth consecutive quarter, according to Moody’s Investor Service, based here. Most of the gains were in the banking sector. Upgrades exceeded downgrades by almost two to one (90 vs. 49) due largely, the firm said, to the accelerating pace of global expenditures, sovereign upgrades and merger and acquisition activity.

The domestic picture is not so rosy, however. For the tenth consecutive quarter, the credit quality of US firms fell, with approximately half as many upgraded as downgraded (66 vs. 111). Moody’s attributed this in part to slower domestic expenditures, higher prices for energy, staff and credit, fewer opportunities for exporting goods to Japan and Europe and a strong US dollar. Speculative-grade borrowers were hardest hit, with almost three times the number of downgrades (75) as upgrades (29).

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.