Europe’s real estate firms find funding respite but refinancing challenge looms; covered bonds provide stability in turbulent times; non-prime office segment faces rising vacancy rates; what can Frederick the Great tell us about today’s capital markets?

European corporate hybrid bond issuance could reach EUR 36bn in 2025, driven by a busy call schedule and lower subordination premiums. Almost EUR 25bn of hybrids hit call dates this year, rising to EUR 38bn in 2026.

Easing financial conditions and returning investor appetite for corporate debt have drawn a line under the European real estate sector’s funding squeeze, though a daunting short- to medium-term refinancing challenge remains.

The methodology is now final following a call-for-comments period and will apply to all issuer and debt ratings of non-financial corporates. A limited impact is expected on outstanding ratings.

European integrated oil and gas companies (IOCs) can look ahead to a balanced credit outlook for the rest of the year compared with the positive one they faced in 2024 as likely lower average oil prices reflect an amply supplied market.

European utilities face more difficult financial crosscurrents this year as years of extra earnings from elevated power prices have come to an end while the funding requirement to meet rising capital expenditure continues to grow.

Scope Ratings calls for comments on its Automotive Suppliers Rating Methodology by 6 March 2025. The update strengthens, refines and further clarifies Scope’s analytical approach. No impact is expected on outstanding issuer and debt ratings.

US tariffs on vehicle imports from Mexico, Canada and China will hit Stellantis NV and Volkswagen AG the hardest, while BMW AG and Mercedes-Benz AG may be less affected due to greater pricing power and higher price elasticity.

Scope’s roster of mandated corporate ratings across different sectors and countries continues to grow with the addition of Spanish water concessions company GS Inima to its coverage.

European non-financial companies face a broadly balanced credit outlook in 2025. Sturdy company finances stand in contrast to a challenging external environment of geopolitical and trade tensions, uneven growth and higher-for-longer interest rates.