KBRA Releases Research – Global Debt Update

By Staff 5 years ago

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases its annual Global Debt Update. According to data from the Bank for International Settlements (BIS), global debt fell in 2018 as GDP growth began to slip last year. This KBRA update discusses global debt dynamics since the Global Financial Crisis (GFC) and the more recent period of 2013-18. In addition, we highlight idiosyncrasies and trends that KBRA continues to discuss in its sovereign research.

Several themes addressed in this research report include:

  • Global debt is higher (by 27.5 percentage points of GDP) than it was leading up to the GFC, underscoring the lasting effects of the financial crisis.
  • Large and slow-to-decline government debt across both advance industrialized and emerging market economies, in aggregate, generally increases sovereign credit risk.
  • Nonfinancial corporate (NFC) sector debt has risen in the U.S., China, Turkey, and Mexico, and remains elevated in select euro area economies.
  • Concerns over more sluggish global growth increases debt repayment risk.
  • Falling world interest rates and a negative interest rate environment in much of the eurozone has helped to offset leverage risk and will lead to greater liquidity in EMs.

To view the report, click here.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:


Joan Feldbaum-Vidra, Managing Director

+1 (646) 731-2362

jfeldbaumvidra@kbra.com

Mauricio Noé, Senior Managing Director, Head of Europe

+44 (0) 777 193 6570

mnoe@kbra.com

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