We continue to expect a mild deterioration in asset quality as pressure in some corporate sectors intensifies amid heightened geopolitical risk and a potential slowdown in global trade.

Buoyant markets, a resilient US economy, rising customs revenues, appeasement by trading partners and conducive politics point to further escalation in US trade tensions, already set to cut global output by an estimated 0.7pps in the medium term.

Tuesday, September 9th 2025 - 3:00 PM (CEST)

The UK Supreme Court judgment partially reversing the Court of Appeal ruling on car finance provides widespread relief to the banks affected as it will materially reduce compensation payouts. The FCA redress scheme will further moderate credit pressures.

Stress-test results demonstrate the improvements Italian banks have made in recent years. Capital positions are comfortable, asset quality is robust and profitability is resilient. Record first-half results point to another strong year.

The Austrian government's planned fiscal consolidation is unlikely to stabilise general government debt-to-GDP over the next five years without further measures to help offset rising structural spending pressures amid the weak outlook for economic growth.

The EU bank stress-test results align with our view that banks’ credit profiles are resilient and would help soften the impact of rising economic and other challenges on credit risk. But risk is skewed to the downside.

Scope Ratings has published the performance overview of notes issued by Marzio Finance, a EUR 10bn securitisation programme backed by ‘cessione del quinto’ and ‘delegazione di pagamento’ (CQS) loans originated by IBL Banca.

Higher US tariffs on imports from the EU represent an external headwind for Ireland’s export and corporate-tax dependent economy but the 15% tariff increase looks manageable without materially challenging the strong public finance outlook.

Scope Ratings requests comments on its Financial Institutions Rating Methodology by 4 September 2025. The proposed changes to the methodology are not expected to have an impact on outstanding ratings assigned by Scope.