Scope Ratings calls for comments on its Chemicals Rating Methodology by 14 May 2025. The update strengthens, refines and further clarifies the analytical approach. The methodology as proposed might have a positive impact of one notch for one rated entity.

The protectionist tilt of US trade policy has unsettled investors, partly by clouding the outlook for global growth. But for European companies with US exposure, the impact of higher tariffs on cashflow and credit quality are mixed and case specific.

Unless Austria’s government undertakes additional reforms to stabilise and reverse rising public debt, public finances will continue to weaken given the modest economic growth outlook and sustained fiscal pressures.

The sharp correction in European banks’ share prices following the announcement of US tariffs on EU imports reflects mounting investor concerns about the potential implications for asset quality and profitability in a traditionally high-beta sector.

The balance of risks for the global credit outlook remains negative. The United States government’s wide-ranging new import tariffs have increased the likelihood of domestic recession and exacerbated global economic and financial vulnerabilities.

Scope’s 12-month trailing ratings drift for structured finance transactions moved into positive territory in the first quarter of 2025, with a positive ratio of upgrades over downgrades not seen since 2022.

Scope Ratings calls for comments on its Pharmaceutical Companies’ Rating Methodology by 4 May 2025. The update strengthens, refines and further clarifies Scope’s analytical approach. No impact is expected on out-standing issuer and debt ratings.

Scope affirmed the UK’s AA ratings on 28 March and kept the Stable Outlook. But fiscal deterioration and weaker debt sustainability increase risks to the rating, while 10% US tariffs on UK exports and 25% on steel and aluminium harm UK growth.

The US’s imposition of 25% tariffs on car imports comes at a bad time for European auto makers which face structural challenges in the shift to electric vehicles, growing competition from Chinese brands, and relatively soft demand in Europe and China.

The methodology is now final following a call-for-comments period and will apply to all issuer and debt ratings of automotive suppliers. No impact is expected on outstanding issuer and debt ratings.