pdf-articles Ratings /ratings/en/research/pdf-articles/240327-credit-conditions-north-america-q2-2024-soft-landing-lurking-risks-101595276 content esgSubNav

Credit Conditions North America Q2 2024: Soft Landing, Lurking Risks

Overall: As the year progresses, credit conditions could brighten somewhat, especially if the U.S. economy settles into a soft landing and the Federal Reserve eases monetary policy in an orderly fashion. Risks: High financing costs and input-price pressures remain persistent risks. A prolonged period of elevated borrowing costs could make the burden of debt service and/or refinancing too heavy for borrowers in need of interest-rate relief. Ratings: The net outlook bias, indicating potential ratings trends, stayed relatively flat over the past quarter and was at negative 10.3% as of March 15. Telecom, health care, and consumer products still have the highest negative bias—with around 30% of issuers having a negative outlook or on CreditWatch with negative implications.

Download

Create a free account to download the PDF.

Gain access to exclusive research, events and more.

Already have an account?    Sign in