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KBRA Releases Research – Credit Finds Itself in a Riskier Place

NEW YORK--(BUSINESS WIRE)--KBRA releases research contending that the U.S. economy is weakening as a result of mounting inflation-related headwinds, including those arising from the Federal Reserve’s aggressive catch-up in tightening financial conditions.

KBRA believes the central bank’s near singular focus over the near term on taming inflation runs the risk of overshooting its goal of curtailing demand, thereby increasing the risk of a hard landing. For credit spreads, which have held in close to long-term averages, the gravitational pull is wider into 2023. Important offsets to the effects of the slowdown are the strong balance sheets of consumers and businesses as well as the sound condition of the financial system.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Contacts

Van B. Hesser, Senior Managing Director and Chief Strategist
+1 (646) 731-2305
van.hesser@kbra.com

Business Development Contact

Dana Bunting, Senior Managing Director
+1 (646) 731-2419
dana.bunting@kbra.com

KBRA

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Van B. Hesser, Senior Managing Director and Chief Strategist
+1 (646) 731-2305
van.hesser@kbra.com

Business Development Contact

Dana Bunting, Senior Managing Director
+1 (646) 731-2419
dana.bunting@kbra.com

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