Kroll Bond Rating Agency (KBRA) has released a macro-market research report, "EU Elections and Sovereign Risk."
This report highlights recent political developments in Europe and discusses KBRA's view as they relate to sovereign risk. KBRA notes that at the institutional level, the European project has been strengthened since the onset of the global financial crisis in 2008. Despite these advances, sluggish growth and belt-tightening fiscal reforms prescribed by the EU in the wake of the crisis have played a key role in determining the current political economy environment in the region. In addition to euro-skepticism, anti-immigration has also been a main theme underlying support for populist parties.
KBRA's base case scenario is that rising nationalist sentiment across many countries in Europe does not directly affect sovereign credit profiles, but we continue to monitor developments in each country for fiscal, economic, and structural impacts. Additionally, the improved economic performance of many of these sovereigns tends to strengthen their credit standings. KBRA does not believe that the political developments outlined in this report substantially increase existential eurozone risks.
To read the report, please click here
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
View source version on businesswire.com: http://www.businesswire.com/news/home/20171116006498/en/
Contacts:
Kroll Bond Rating Agency
Analytical
Joan Feldbaum-Vidra, 646-731-2362
Managing Director
jfeldbaumvidra@kbra.com
