Scope Ratings calls for comments on its Government Related Entities Rating Methodology by 29 July 2024. The proposed update refines Scope’s analytical approach. No rating changes are expected as a result of this update.

Scope has published the final version of its supranational methodology together with a feedback report addressing market participants’ comments. The methodology update, which follows a call for comments released on 10 May 2024, has no rating impact.

A sustained period of higher interest rates will present a challenge for many borrowers worldwide, as economies adapt to a new era of comparatively tight monetary policy amid a recovery in growth and enduring inflation.

Strong momentum behind the Flemish nationalists and separatists in Belgium’s federal election aggravates political fragmentation and polarization. It complicates forming a new government and the consolidation of public finances, a key credit challenge.

To bolster European security, defence, and strategic independence while improving competitiveness, the EU needs deeper capital markets and extra EU-level funding for the necessary investments. Growing political fragmentation is complicating the task.

The methodology has been withdrawn for business reasons.

The outcome of France’s snap legislative election could further limit government’s ability to tackle its most urgent credit challenges, including consolidating public finances, if opposition parties strengthen their grip on the National Assembly.

The expected rise in support for far-right parties in the European Parliamentary elections and across member states will likely influence EU policy making but should not significantly alter Europe’s strategic priorities for tackling structural challenges.

South Africa faces a period of greater political fragmentation and reduced governability, adding pressure in the face of rising economic, social and especially fiscal challenges that need to be addressed by the next government.

The challenges of dealing with structurally rising debt and gradual de-dollarisation, which might both accelerate after this year’s presidential election, constitute growing pressure points for the sovereign credit rating of the United States.