Credit Quality Of Australia's Materials And Energy Sectors Cools, Report Says
Credit quality across Australia's materials and energy sectors is expected to
maintain a negative tone in the near term, even though many companies continue to benefit from the ongoing
resources boom.
When Fear Overtakes Fundamentals In Credit Markets
Global capital markets currently face
single-day movements of 30% or more in share prices of financial companies and
volatility in borrowing rates and spreads on credit default swaps. When
uncertainty of this magnitude dominates the markets, Standard & Poor's Ratings
Services believes that the assessment of a financial institution's credit
profile should take into account the interaction between fundamental credit
elements and short-term factors shaped by market distress.
Report Discusses How Stock Prices Can Affect Ratings
The price of a company's shares is
one of the many factors that Standard & Poor's Ratings Services may consider
in rating a company's debt. However, a company's share price, by itself, is
never the primary factor in how we analyze the creditworthiness of a company.
To view all Presale Credit Reports, please visit the individual sector's ratings page, accessible through the left navigation.
Related Information:
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Join some of our most senior corporate ratings analysts as they discuss what’s been happening in various industry sectors and what the outlooks are. 29 October, Sydney
