In February, S&P Global Ratings projected that the total value of outstanding bad debt in the Turkish banking sector will approximately double by the end of the second half of 2020 at the latest.
While the pace of bank M&A transactions in 2018 has been on par with the same period in 2017, deal valuations are on the rise. During the first quarter, the aggregate value of all announced bank deals was $4.08 billion, down sharply from $9.08 billion a year earlier
Chile has been one of South America’s mainstays, lauded as possibly the continent’s wealthiest and most stable country. But the Chilean economy, the health of which is heavily dependent on copper exports, has suffered greatly since the decline of the commodity super-cycle in 2014-15, and credit-rating agencies are showing no mercy—making life even more difficult for the country’s incumbent government.
Controversy involving a country’s top politicians often trickles down to its vulnerable financial sector; South African banks have joined the list of victims of decisions made by their political leadership that have caused credit ratings to plunge and economic prospects to tumble, posing a challenge to the healthy internal conditions of most banks. Will a bank crisis accompany the political one?
On May 24, Moody’s reported that it had downgraded China’s long-term local currency and foreign currency issuer ratings from Aa3 to A1. With the downgrade, China’s credit rating is now on a par with those of Israel, Japan and Saudi Arabia.
Given the tepid performance of global equity markets so far this year, the situation has opened up opportunities for investors to delve into stocks that appear to be bargains.
The decline in global oil prices between mid-2014 and February 2016 had a dramatic impact on many economies around the world. Prices slid below the average costs of production for many oil-producing nations, which in turn rendered their