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rating action

Russia's Outlook Revised to Positive; Affirmed at 'BBB-'

Russia continues to make progress in strengthening its policy framework underpinned by a more flexible exchange rate, strong commitment to inflation targeting and a prudent fiscal strategy, reflected in the recently approved budget rule.

Some Chinese LGFV Defaults Likely, Timing Uncertain

The first defaults on public bonds by Chinese local government financing vehicles (LGFVs) are becoming more likely, and will probably trigger a repricing of the market. However, widespread LGFV defaults remain a tail-risk, given that the authorities continue to rely on local government investment - supported by LGFVs - to hit economic growth targets, and have a broad spectrum of policy tools to limit default contagion.

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Thyssenkrupp on Rating Watch Positive

This rating action follows the signing of a memorandum of understanding between TK and Tata Steel Limited to contribute their European steel assets to a 50/50 joint venture.

Ukraine Bond Issue Is Positive but IMF Funding Still Key

Ukraine (B-/Stable) raised USD3 billion of 7.375% 15-year bonds on Monday in its first international issue since the crisis triggered by Russia's military intervention in 2014 and Ukraine's subsequent debt restructuring. The issue attracted orders of USD9.5 billion from around 350 investors, according to the Ministry of Finance.

EMEA LevFin Risks Tempered by Debt Affordability, Reforms

The European leveraged credit market's inherent vulnerability to shocks from valuation and leverage multiples at pre-crisis highs is mitigated by ample debt service headroom, private equity financial sponsors' changing approach to asset selection and post-crisis regulatory reform.

US Home Prices Climb to Pre-Crisis Levels

Home prices in the United States have now climbed to levels last seen a decade ago, though unlike 10 years prior, much of the country's growth is now sustainable in its latest quarterly US RMBS sustainable home price report.

Morocco Reserve Fall Unlikely to Prompt FX Policy Shift

Reserves have now bottomed out and we expect the authorities to implement gradual alterations to the foreign exchange framework while trying to achieve a more robust anchoring of policy expectations by fine-tuning their communication strategy.

Transition is Main Rating Challenge in EU MMF Reform

The main risk posed to ratings from European money market fund reforms comes from unexpected disruption during the transition process. However we expect fund managers to take steps to mitigate such risks, including strengthening liquidity during the transition. Related: MMF Compare Interactive Money Fund Comparison Tool

Turkish Banks' External Debt Ticks Up but Liquidity Sound

Banks' external debt rose USD9 billion to USD172 billion in 1H17, reflecting a pick-up in bond issuance in benign market conditions and foreign-exchange movements that resulted in upward revaluations of euro and lira obligations. 

Retail Institutional Default Rate Could Top 10% With Toys R Us

Toys 'R' Us' filing on September 18 pushes the retail institutional leveraged loan default rate over 7% from last month's 5.3% mark and that figure could surpass 10% by year end.
Related: Toys 'R' Us' IDR Downgraded to 'D'Toys 'R' Us Bankruptcy Has No Rating Impact on US CLOs

QE and World Growth Buoy Global Rating Outlooks

Global rating outlooks remain on an improving trend and are on balance less negative than at the start of the year across most rating sectors. However, the improving outlook for global credit quality is underpinned by years of loose central bank monetary policy, including QE. 
FT: Fitch Hails Improving Outlook for Sovereign Borrowers


China in Focus

Latest: China's Securitisation Market Continues to Grow Strongly

Hurricane Impact

Hurricane Irma Insured Losses Substantial, but Tempered by Storm's Path

Estimated insured losses for the insurance industry for Hurricane Irma range from $25 to $50 billion based on various loss estimates.

Related: Liquidity, GDP Challenges for Caribbean Credit After Irma

Fitch Solutions Strengthens Counterparty Risk Solution with 'AI' Powered News, Expanded Macro Data

Fitch Solutions has announced a number of powerful enhancements to its Counterparty Risk Solutions, each designed to help risk professionals make faster and more insightful decisions. The Counterparty Risk Solution now includes a curated news monitoring service, Country Risk Data from BMI Research, and Bank Rankings - all delivered through the Fitch Connect platform.