Latest news with #S&PGlobalRatings
Bloomberg
2 days ago
- Business
- Bloomberg
Santander Unseats Barclays as Europe's Biggest Issuer of SRTs
Banco Santander SA surpassed Barclays Plc as Europe's largest issuer of significant risk transfers, according to S&P Global Ratings. In order to come up with a volume estimate for the privately-negotiated deals, S&P used data on the senior portions that banks retain on their balance sheets and disclose in their regulatory filings. These retained tranches typically represent about 80%-95% of the reference portfolio in European SRTs.
Yahoo
2 days ago
- Business
- Yahoo
Varex Imaging Corporation (VREX) Downgraded by S&P as Regulatory Outlook Remains Cloudy
S&P Global Ratings has downgraded its ratings on Varex Imaging Corporation (NASDAQ:VREX) because it believes the stock is surrounded by high levels of unpredictability and weaker credit metrics. Tariff drama has been lingering for quite some time now, and with uncertainty around policy implementation by the U.S. administration, the firm believes Varex's profitability and sales are under serious threat. A technician in a lab coat inspecting an X-ray imaging component. The slashing of the rating from 'B+' to 'BB-' also considers the refinancing risk of the company stemming from near-term maturities. With short-term capital structure, external factors, including capital market conditions and geopolitical risk, push the company into a vulnerable state. This isn't the first time the company has exhibited such performance. The credit assessor now expects a leverage above the downside threshold of 3.5x, with a free operating cash flow (FOCF) to debt below 12% for FY2025, much in line with last year's benchmark. No relief from the medical segment either, as the demand remains subdued. Despite the approval of a $1.4 trillion government stimulus package, the Chinese government is taking initiatives to support local vendors, putting further pressure on Varex Imaging Corporation (NASDAQ:VREX)'s sales. However, due to the company's competitive position and new contracts, S&P has extended a stable rating outlook. While we acknowledge the potential of VREX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VREX and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Yahoo
3 days ago
- Business
- Yahoo
Q1 GDP revision takeaway: 'Softer' consumer spending
First quarter gross domestic product (GDP) revisions released Thursday morning show that overall, the US economy contracted less than expected, while consumption growth was revised downward. S&P Global Ratings global chief economist, Paul Gruenwald, and Kayne Anderson Rudnick chief market strategist and portfolio manager, Julie Biel, join Madison Mills on Catalysts to break down the data and examine the health of the US economy. To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
Arabian Post
3 days ago
- Business
- Arabian Post
Kuwait's Fiscal Gap to Widen Amid Oil Price Pressures and Spending Rigidities
Kuwait's fiscal deficit is projected to average 8.9% of GDP between 2025 and 2028, a significant increase from the estimated 2% in 2024, according to S&P Global Ratings. This deterioration is attributed to subdued oil prices and persistently high government expenditures, particularly on wages and subsidies, which together account for approximately 70% of total spending. S&P anticipates Brent crude oil prices to average $65 per barrel in 2025 and $70 per barrel from 2026 to 2028. These projections are lower than previous estimates, reflecting ongoing global supply-demand imbalances and geopolitical uncertainties. HSBC has also revised its forecasts, lowering the 2025 Brent price to $68.5 per barrel from an earlier estimate of $73. Similarly, BMI projects Brent prices at $68 per barrel in 2025, with a slight increase to $71 in 2026. The Kuwaiti government's expenditure profile remains heavily skewed towards recurrent spending. In the fiscal year ending March 31, 2025, wages and subsidies are expected to constitute 79.5% of total spending, with capital expenditures comprising just 9.1%. This allocation leaves limited fiscal space for developmental projects and economic diversification initiatives. ADVERTISEMENT Efforts to rationalize spending have yielded minimal results. The 2025/26 budget indicates a marginal 0.1% decrease in total expenditures compared to the previous year. While employee compensation is set to rise by 1.6%, allocations for subsidies, other expenses, and capital expenditures are projected to decline by 2.2%, 3.7%, and 1.7%, respectively. Kuwait's reliance on oil revenues continues to pose challenges to fiscal sustainability. In 2023/24, total public expenditure represented 50% of GDP, significantly higher than the global average of 37% and the high-income countries' average of 41%. Moreover, 92.6% of the budget was consumed by current expenditures, primarily on employee compensation and the purchase of goods and services, leaving limited resources for investment in development projects. Despite these challenges, Kuwait maintains a strong credit profile. S&P has affirmed the country's 'A+' rating with a stable outlook, citing its substantial sovereign wealth fund assets, which provide a buffer against fiscal shocks. However, the agency warns that without structural reforms to diversify the economy and reduce expenditure rigidities, fiscal pressures are likely to persist. In response to the widening fiscal gap, Kuwait is considering borrowing for the first time in nearly a decade. A new public debt law has been passed, aiming to finance significant projects such as a new port and airport terminal. These initiatives are part of broader efforts to reduce reliance on oil revenues and stimulate economic diversification.
Khaleej Times
5 days ago
- Business
- Khaleej Times
Ras Al Khaimah GDP likely to expand at 3.3% this year
Ras Al Khaimah's economic growth will weaken modestly to average 3.3 per cent in 2025-2026, S&P Global Ratings said on Tuesday. The ratings agency affirmed the emirate's sovereign credit rating, announcing its foreign currency and local currency at A/Stable/A-1. Thereafter, S&P expects real GDP growth to accelerate to average 4.3 per cent in 2027-2028 on the back of a strong performance in tourism, real estate, manufacturing, and mining. Wholesale and retail trade and manufacturing — which make up 50 per cent of RAK's exports on average — together contribute around 45 per cent to RAK's real GDP. 'RAK's diversified non-oil economy and ongoing infrastructure projects will continue to support its medium-term growth trajectory beyond 2026,' S&P said. The agency expects real GDP growth to remain just above 4 per cent annually in 2027-2028 and GDP per capita to strengthen to about $32,800 by 2028. 'We expect upcoming tourism projects and the related infrastructure spending to help strengthen RAK's mining sector, as well as its economic free zones, airport, and real estate sector,' the ratings agency said. By far the largest of the tourism projects is the Wynn Al Marjan Island integrated resort, with the overall cost amounting to about 40 per cent of GDP. The resort is set to open in early 2027 and has been awarded the commercial gaming operator's licence — the first to be granted in the UAE. There are also plans to open about 20 new hotels in the next two-to-three years, resulting in a projected 75 per cent increase in hotel room capacity. To mitigate the risk of overcapacity, the authorities envisage targeting a wider market and increasing the variety of tourism offerings. S&P also expects positive momentum in RAK's real estate sector, driven by transactions relating to tourism, industry, and investment, especially on Marjan Island. The island has recorded significant growth in primary residential sale prices in the past two years. RAK's mining sector, which contributes about 25 per cent of the emirate's exports, continues to benefit from infrastructure projects within the UAE and GCC. One of the world's largest limestone quarrying companies, Stevin Rock, which is 100 per cent owned by the RAK government, supplies rock to large construction and reclamation projects within and outside the UAE, including local projects in RAK and property development projects in Abu Dhabi and Dubai. S&P believes that the government's strong net asset position partly mitigates the risk of contingent liabilities. The RAK government's gross debt was a low 8 per cent of GDP in 2024 and this includes a $1 billion sukuk that the government refinanced in March 2025. Liquid assets of an average 28 per cent of GDP over 2025-2028 more than offset government debt. RAK's liquid assets are predominately in cash and RAKBANK stock. 'Although the government has increased its overall stake in RAKBANK and is a majority shareholder, we view this holding as opportunistic rather than strategic, and ultimately a timely source of funding for the government if it needs it. We forecast that the government's interest burden will remain less than a low 5 per cent of government revenue due to its small debt stock,' the agency said.
