Global corporate rating stabilisation continues: Fitch

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Islamabad

The increasing pace of non-financial corporate rating outlook stabilisations and reversals of negative rating actions in Fitch Ratings’ global portfolio should persist over the near term, as vaccinations continue and mobility restrictions ease in certain parts of the world, said Fitch Ratings.

However, the share of Fitch’s global corporate portfolio with a Negative Outlook or Rating Watch remains elevated and regional differences exist due to the timing of the pandemic’s spread, sector composition and a gap in economic recovery prospects around the world.

According to the rating agency, divergent recovery prospects among countries and companies will be evident in future corporate rating actions over the remainder of 2021. The ratio of downgrades to upgrades approximated pre-pandemic levels at 1.9x at 1Q21.—Agencies