Germany is facing severe demographic challenges with more acute structural pressures than other advanced economies. Labour-market and pension reforms are essential, but fragmented politics risks eroding the country’s competitiveness.

Scope Ratings has updated its rating report on MFO Rico Express LLC, rated B+ with Stable Outlook.

No action has been taken on the Class A and Class B notes following the monitoring review.

The ratings are driven by the high integration with the Italian Republic and the likelihood of exceptional support.

The US and global economies remain resilient ahead of forthcoming US elections. However, Europe’s economic fragility poses challenges for credit despite support from the easing of interest rates.

Only six of the 20 loans in European CMBS that were scheduled to refinance this year have been repaid or refinanced. Nine were modified and three were extended. Meanwhile, two thirds of the loans still fail bank lenders’ refinancing requirements.

The affirmation is driven by stable operating profitability and a strong order backlog, providing visibility on revenues until 2026, while weak diversification and limited size make the issuer vulnerable to adverse market developments.

Scope downgrades the class A notes issued by Maior SPV S.r.l., a static cash securitisation of Italian NPLs, following a monitoring review.

The ratings are supported by a wealthy, large, diversified economy, sound public finances and a strong external position. Transition risks related to carbon neutrality targets, an ageing population and global geopolitical risks are challenges.

The periodic review has resulted in no rating action.