The European retail sector, particularly in food and electronics, continues to face a challenging operating environment shaped by shifting consumer behaviour, rising cost pressures and investment-heavy structural transformation, says Scope Ratings.

Europe’s telecoms operators are on course to reduce leverage to the lowest level in a decade as the capex cycle continues to turn down over the next two years, assuming no major outlays on M&A and technology.

The buzz around private credit since First Brands’ bankruptcy shows that investors need to be alert to the risks of engaging with this market. But it is also important not to exaggerate the credit risks or rate of growth of this market.

The recent collapse of First Brands, in casting a shadow over the direct-lending sector in the US, raises important questions: does the rapid growth in private credit amplify corporate credit risk and will this be different in Europe compared with the US?

Climate change can materially affect the creditworthiness of all issuer types and asset classes, so we have harmonised our general framework for capturing this risk, which can be applied to produce issuer-specific Key Climate Risk Indicators (KCRIs).

Germany, the Netherlands and Belgium need far more investment to modernise their electricity transmission grids through 2034 than southern European countries, hence the importance of having secured most of the EUR 200bn-plus in required funding.

US plans to slap hefty tariffs on pharmaceutical imports have led European firms to speed up US investment and reset supply chains, the full credit impact of which will depend on the products targeted and whether the extra costs compromise innovation.

LANXESS moves to divest Envalior stake, supporting deleveraging strategy and investment-grade credit metrics

Europe’s real estate market will continue to diverge in credit quality amid residual investor nervousness about assets and owners exposed to refinancing risk, rising refurbishment costs, the uncertain economic outlook and adverse trends in demand.

Two years of rating pressure on European corporates shows signs of easing but credit risk remains tilted to the downside for the rest of 2025 given geopolitical uncertainty, economic headwinds and challenging financing conditions for the smallest firms.