NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases a research report entitled “What’s Ailing the Largest Global Banks?” The report makes the following key points:
- Kroll Bond Rating Agency (KBRA) believes that from a credit perspective, large banks are financially sound and are unlikely to see any volatility in credit ratings in the near term. However, movements in equity valuations and credit spreads since the start of 2016 suggest that some institutions may be facing reduced liquidity and market access.
- While KBRA believes that large universal banks are financially sound, falling equity market valuations are significant and reflect increased investor concern over credit more generally, as illustrated by the expansion of credit spreads. We believe that policymakers need to focus on actions and policies that will calm global financial markets and help reduce credit spreads. So far the actions taken by global central banks seem to be moving in the opposite direction.
- KBRA believes there is an increased risk of defaults in the energy sector, which if not addressed could become a more systemic problem.
To view the report, please click on the following link: https://www.krollbondratings.com/show_report/3731
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
