Latest news with #Fitch Ratings
Arab News
4 days ago
- Business
- Arab News
Fitch-rated sukuk surpasses $210bn as market expands 16%
RIYADH: The value of sukuk rated by Fitch Ratings exceeded $210 billion in the first half of 2025, marking a 16 percent increase from a year earlier, as demand for Shariah-compliant debt continues to accelerate across global markets. In its latest Islamic finance report, Fitch said that 80 percent of its rated sukuk maintain investment-grade status with no recorded defaults, highlighting the relative stability and creditworthiness of issuers despite tightening global financial conditions. The US dollar remained the dominant issuance currency, accounting for over 90 percent of rated sukuk, followed by the Malaysian ringgit at 6.2 percent. Fitch currently rates more than 255 sukuk and 95 programs, representing over 70 percent of the outstanding global US dollar-denominated sukuk market. Earlier this month, a report by Kuwait Financial Center, also known as Markaz, echoed similar views, stating that US dollar-denominated instruments dominated the Gulf Cooperation Council debt market in the first half of 2025, raising $73.1 billion through 146 issuances — representing 79.4 percent of total value. Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings, said: 'Most Fitch-rated sukuk rank senior unsecured and hold international long-term ratings with about 87 percent of sukuk issuers having a stable outlook.' He added: 'Over 90 percent of rated sukuk are US dollar-denominated and are largely characterised by bullet and fixed-rate structures. Medium-term sukuk with tenors between three to 10 years dominate, comprising over 81 percent of all rated sukuk.' Sukuk rated in the 'A' category made up the largest share at 39 percent, followed by 25 percent in the 'BBB' category and 13 percent in 'BB.' Fitch also noted that 11 percent of all rated sukuk are considered long-term, with maturities exceeding 10 years, while only 7 percent have tenors shorter than three years. Most of these instruments are expected to mature by 2030. Environmental, social, and governance sukuk are also gaining traction, now accounting for 12 percent of all Fitch-rated sukuk outstanding, with a total value of $25 billion. Most ESG sukuk are dual-listed on major exchanges such as the London Stock Exchange, Nasdaq Dubai, and Euronext, reflecting their appeal to a broad international investor base. The analysis further highlighted increasing regional and sectoral diversification. The Middle East continues to lead with a 69.9 percent share of rated sukuk as of end of the first half, followed by Asia at 21.6 percent and Europe at 7.3 percent. Affirming the growth of the Middle East's debt markets, Fitch noted in December that total outstanding debt in the GCC region surpassed the $1 trillion mark. Also in December, Kamco Invest projected that Saudi Arabia would lead the region in bond maturities over the next five years, with around $168 billion in Saudi bonds expected to mature between 2025 and 2029 — underscoring the Kingdom's growing prominence in regional debt markets. In its latest report, Fitch added that sovereign and supranational issuers still account for more than half of the rated sukuk market. However, issuer diversity is increasing, with sizeable contributions from financial institutions, corporates, international public finance, infrastructure and project finance, as well as structured finance.
South China Morning Post
6 days ago
- Business
- South China Morning Post
As US' effective tariff rate rises to 17%, analysts say China has an opportunity
The United States has become one of the most protected markets in the world, with its effective tariff rate against the world rising to 17 per cent from around 2 per cent last year – prompting renewed calls in China for greater trade diversification and a strategic push to seize opportunities in technological self-reliance and global governance. Fitch Ratings updated its US Effective Tariff Rate (ETR) Monitor – an interactive tool tracking tariff policy – last week, following Washington's announcements on July 27 and July 31 of new tariffs on most trading partners. As a result, the US effective tariff rate now stands at 17 per cent. China continues to face the highest tariff burden among America's major trading partners, with China's ETR at 41.4 per cent, up from 10.7 per cent at the end of last year. Liao Yue, a lecturer at Renmin University of China, pointed out that US President Donald Trump's second term has pushed his Make America Great Again (Maga) agenda to new heights. 'Maga supporters believe that free trade has put the US at a disadvantage – especially blaming China for the hollowing out of American industry – and they advocate for protectionist policies such as high tariffs and reshoring manufacturing to restore the economic dominance of a perceived golden age,' Liao said during an online forum last week. He added that while the near term may see China facing more intense trade frictions, or even a full-scale tariff war, a window of opportunity exists for China in the weakening of the US alliance system under Trump's 'America first' agenda.
South China Morning Post
6 days ago
- Business
- South China Morning Post
China's property slump may be bottoming, as analysts point to hopeful signs of recovery
China's slumping property market may finally be reaching a bottom, as credit has resumed flowing to developers while the nationwide inventory of unsold homes has shrunk, analysts said. Advertisement The decline in China's new home sales this year may slow to 7 per cent, Fitch Ratings said on Tuesday after revising its forecast from a previous decline of 15 per cent, due to the better-than-expected performance of the property market in the first half. The credit-rating agency also lowered its forecast of the sales drop by gross floor area to 5 per cent, better than a previous estimate of 10 per cent. Government support is helping, as relaxed rules around home purchases, lower mortgages, interest rate cuts, as well as the absorption of excess housing inventory via special-purpose bonds issued by local governments. Five early indicators are supporting China's housing market recovery, HSBC analysts wrote on Monday. These include improving credit conditions among developers, industry consolidation, inventory clearance, stronger land sales and improving market-oriented pricing models for residential homes, especially in higher-tier cities. Cranes on residential buildings under construction by the Chinese property developer China Overseas in Nanjing, in eastern China's Jiangsu province on April 25, 2025. Photo: AFP 'The downturn has been shorter than the 'lost decade' rhetoric that some investors embraced,' the analysts wrote. Since the property crisis began in 2021, the market has consolidated rapidly, with the top 15 state-owned developers expanding their market share from 15 per cent four years ago to 23 per cent in the first half of this year – a shift that has been instrumental in stabilising the sector, HSBC said. Advertisement
Yahoo
03-08-2025
- Automotive
- Yahoo
US car market bankrupting Americans — and it'll only get worse. How to save thousands if you want to buy a car
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links. The U.S. car market faces a perfect storm that is rapidly engulfing ordinary car owners across the country. The clearest warning sign is the rising rate of auto loan borrowers who are falling behind on their monthly payments. As of January this year, 6.6% of subprime auto borrowers were at least 60 days past due on their loans, according to a report by Fitch Ratings. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service This is the highest rate since Fitch started collecting this data in the early 1990s. And things are not expected to get better. The report says the subprime segment of the auto loan market faces a 'deteriorating outlook' for the rest of 2025. This is especially alarming given the scale of the auto loan market. As of the first quarter of 2025, households carried $1.64 trillion in auto loan debt — surpassing both the $1.18 trillion in credit card debt and the $1.63 trillion in student loan debt, according to Here's how cars transformed from symbols of freedom to symbols of unsustainable, toxic debt. How did we get here? The foundation of today's crisis was laid five years ago during the pandemic. Supply chain disruptions and factory closures created strange dynamics that pushed car prices higher. In January 2022, 80% of new car buyers paid more than the manufacturer's suggested retail price, or MSRP, according to Edmunds. Used car prices were rising faster than new car prices at the time, according to Cox Automotive. In other words, car buyers paid too much for their cars. Now, values have declined while many owners have seen a steady rise in interest rates. This shift has pushed many car owners underwater on their purchase. In fact, one-in-five vehicle trade-ins near the end of last year had negative equity of $10,000 or more, according to Edmunds. The situation is grim, and the outlook is just as bleak. Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees — What comes next? While the auto market is dealing with rising interest rates and dropping prices, it's now also facing the additional challenge of President Donald Trump's trade war. About half of U.S. car purchases in 2024 are imports, with many domestic makers relying on foreign parts. The recent 25% tariffs on imported cars could add $6,000 to manufacturing costs for vehicles under $40,000. With consumers already strained, manufacturers can't easily pass these costs on and are cutting expenses and jobs. GM and Stellantis have laid off hundreds, and Ford recently cut 350 software jobs, citing efficiency needs. Buyers should prepare for a tough market ahead. Protect yourself If you're looking to buy a new car in this market, it's probably better to do so before the tariff impact trickles down to the price tag, according to Kelley Blue Book. However, given where interest rates and prices currently are, try to stick to a tight budget while shopping. Buying a relatively cheap used car or leasing one if you can find a good deal is probably a good idea. If you're a car owner struggling with auto loan debt, consider trading it in for a cheaper model to reduce the burden. If you own multiple cars, it might also be a good time to sell one to reduce your loan exposure. Refinancing or finding a better auto loan rate is worth considering, too. Over one-in-four Americans owe more on their car loans than the vehicles are worth, according to the Washington Post. Securing a good refinancing deal now can protect you from future market ups and downs. You can compare auto loan refinance rates offered by lenders near you through LendingTree. Here's how it works: Just answer a few simple questions about yourself and the vehicle you drive — and LendingTree will connect you with two to five lenders from their network of more than 300 lenders. You may be eligible for refinance loans starting at 3.50% APR, through LendingTree's network. The best part? The process is completely free and won't hurt your credit score. It's also important to remember that as car prices increase, insurance premiums typically rise as well. According to ValuePenguin, car insurance rates went up by an average of 16.5% in 2024. Comparing quotes is a smart way to save money on your insurance. lets you compare quotes from trusted brands, including Progressive, Allstate and GEICO, to make sure you're getting the best deal. You can find plans starting as low as $29 per month. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
