The Credit Cloud: Global Funding

Globally, nonfinancial corporations will demand up to $53 trillion in refinancing and new debt needs over the next five years. China will likely surpass the U.S. as the world's largest borrower of nonfinancial corporate debt by 2014 or 2015.

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S&P's Insurance Industry And Country Risk Assessments Offer A Global View Of The Forces Shaping Insurance Markets

Earlier this month, we assigned for the first time Insurance Industry and Country Risk Assessments to 97 insurance sectors worldwide. We use the assessments as a factor in rating insurance companies, and have designed them to provide us and market participants with a comparative and global view of insurance risk across sectors, regions, and countries. Though not entirely surprising, the most striking conclusion for the two main sectors, life and property/casualty, is that the overall risks are, on average, much lower in developed than in emerging markets. What is also noticeable is that industry risk is lower in emerging P/C markets than in developed ones. That's because more favorable competitive dynamics in emerging markets have allowed for continued strong profit margins, which have declined under competitive pressure in more mature markets.

Latin American Nonbank Financial Institutions' Performance Will Pick Up Slightly In 2013

Our base-case scenario for rated Latin American nonbank financial institutions (NBFIs) is positive, with the exception of Argentina-based entities. The main economic drivers for the Latin American NBFIs are availability and cost of funding sources, dependence on capital markets, and global business cycles, which directly affect the demand for credit and household debt. NBFIs include multipurpose finance companies and limited purpose finance companies, such as leasing companies, warehouses, and general lenders. They also include pawnshops and payroll lenders, among other types of financial intermediaries. Despite the global economic slowdown, Latin American economies have been fairly resilient. According to our latest economic analysis, we forecast a regional GDP growth of 3.2% in 2013 (down from 3.5% in the first quarter of the year) and 3.4% in 2014. The slight change is due to signs of an uneven recovery and slower growth in Brazil.

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Italian Province of Rome Affirmed At 'BBB+'; Outlook Remains Negative

The ratings on Rome primarily reflect our long-term rating on Italy. We assess Rome's indicative credit level (ICL) at 'aa-'. The ICL is not a rating but a means of assessing the intrinsic creditworthiness of local and regional governments (LRGs), assuming that there were no sovereign rating cap. The ICL of 'aa-' reflects the province's positive financial management, very strong budgetary performance, strong and resilient economy and very positive liquidity. Rome's still high (although declining) tax-supported debt and moderate financial flexibility, due to decreasing leeway to raise taxes, partly offset these positives. The ICL is supported by a powerful economy that fuels Rome's tax bases.

Uruguay 'BBB-/A-3' Ratings Affirmed; Outlook Remains Stable

The ratings on Uruguay reflect its stable political system, strong public institutions, favorable medium-term growth prospects, and improving debt profile, all of which reduce its vulnerability to external shocks. The ratings also reflect rigidities due to a still high level of dollarization, limited fiscal and monetary flexibility, and vulnerability to commodity price swings and adverse economic trends in the region. Eleven years of continued GDP growth should boost Uruguay’s per capita GDP above US$16,000 in 2013. Rising prosperity and improving social indicators augur well for political stability and continuity of key economic policies beyond the election cycle.

American International Group Inc. And Core Subsidiaries Affirmed Following Insurance Criteria Change

The ratings reflect the group's very strong business risk profile (BRP) and strong financial risk profile (FRP), built on a very strong competitive position and very strong capital and earnings. We assess AIG's insurance industry and country risk assessment (IICRA) as intermediate, given our view of low country risk and intermediate and low industry risks for its non-life and life insurance operations, respectively. Our view of AIG's low country risk reflects the relative stability of economic risk, effective and stable political institutions, sophisticated financial systems, and strong payment culture in the countries in which AIG predominantly operates.

Chinese Department Store Operators Can Sidestep Economic Hurdles

China has yet to lose its shopping bug. Department stores continue to open up around the country, and now contribute a significant share of retail sales. But Chinese operators face tougher times ahead with slower growth. Competition is building among players and from a rising number of different retail formats, including online buying. How would Chinese department stores fare in this increasingly more competitive environment? Department stores must also contend with shifting economic factors--the most immediate being private consumption. China's government realizes that it cannot rely solely on investments to push the world's second-largest economy. It pledged last month to boost domestic consumption after growth fell slightly in the first quarter of 2013. If the government follows through, that again is positive for department stores.

Acuity Brands Inc. Outlook Revised To Positive On Good Credit Measures; 'BBB-' Rating Affirmed

The outlook revision reflects good credit measures and positive operating prospects, which if sustained, could support a higher rating. Acuity's operating performance will remain tied to demand in U.S. new commercial construction and renovation markets. We expect improving, if still fragile, new construction activity over the next two years, which should support revenue growth in the mid-single-digit area. In addition, a disciplined approach to external growth and shareholder distribution has resulted in credit metrics that are better than our expectations for the rating. Acuity designs, produces, and distributes indoor and outdoor lighting fixtures and related products for industrial, infrastructure, residential, commercial, and institutional applications.

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Insurance Criteria

Insurance

Insurance Criteria
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The Risks Of Chasing Yield

High Yield & Leveraged Finance

The Risks Of Chasing Yield
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Hot Topics In Servicing

Servicer Ranking & Evaluations

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Issuance Gets Back On Track

High Yield & Leveraged Finance

Issuance Gets Back On Track
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U.S. Consumer Products 2013

Consumer & Retail

U.S. Consumer Products 2013

Financial Institutions Spotlight

A global report to help you better track the industry’s key issues and credit rating trends in the Financial Institutions sector.

European Economic Update

Monthly economic report from Jean-Michel Six, Chief Economist EMEA. S&P's view of where the market is going.

CLO Quarterly Trends

Provides a quarterly overview of the U.S. collateralized loan obligation (CLO) market, including new CLO issuance, rating actions and other trends we believe might interest market participants.

Economic & Quantitative Research

Each month, Standard & Poor’s Economic and Quantitative Research will provide readers with a snapshot of some of the most important macro-economic analysis, thought leadership and quantitative research published by Standard & Poor’s Ratings Services.

CreditMatters Today

Covers the top Standard & Poor's headlines of the day based on select credit market news, analyses, commentary, and multimedia.

Understanding Ratings

A monthly newsletter that brings together articles, videos, and educational guides intended to provide insights into what credit ratings are and what they are not, the ratings process, current credit hot topics, and how ratings have performed over time.

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Special Report: Africa Taps New Debt Market

May 2013

A special report from Standard & Poor's Services team of experts looking into what has brought on the change.

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Credit Week Special Report: Global Economic Outlook

April 2013

Looking out into 2014, we expect the global economic expansion to gain a firmer footing as the recovery in the U.S. moves up a notch in strength

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Special Report: The Gulf- Shelter From The Storm

April 2013

High oil prices are fostering growth in the Gulf region and insulating the economy and credit quality of rated issuers from the economic and political turbulence surrounding them.

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Standard & Poor’s Global Aging Interactive Tools

March 2013

For the first time, S&P's Global Aging data is available via interactive tools on the Web and an iPad app that allow users to view the impact of aging on public finances.

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South African Corporates

February 2013

A recent publication looking at credit trends in the South African corporate sector, focusing on 40 of the larger companies.

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Top 10 Investor Questions For Global Corporates

January 2013

The fiscal cliff, eurozone economy, and China's growth top the list of investor questions for 2013 in this multimedia collection.

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Global Oil & Gas Producers: Navigating Through A Dynamic Period

January 2013

Learn more about the global oil and gas industry in this multimedia collection.

Insurance Criteria

An overview of newly published insurance criteria.

Gulf Cooperation Council

Gulf Cooperation Council: In the Middle East, Standard & Poor’s provide all our global e-services to the local markets from our regional office based in Dubai with support from our global network. Our services include the provision of independent credit opinions, indices, risk evaluation, fundamental and quantitative investment research and analysis solutions, data services, fund management ratings and securities information. Our regional focus and expertise resulted among others in the launch of the GCC regional rating scale in 2010 and S&P/Hawkamah ESG Pan Arab index.

HousingViews Blog

HousingViews Blog: HousingViews is Standard & Poor's blog on the housing market that features posts, reports and commentary from analysts across the S&P organization reporting on a wide-range of housing topics.

Infrastructure Views Blog

Infrastructure Views Blog: In addition to featuring Standard & Poor's reports and commentary, this blog is a forum for perspectives about the state of global infrastructure and includes guest contributions from respected professionals in many different fields.

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