Efforts to address remaining items in the Covered Bond Directive continue. While the Directive has brought many benefits, there is still room for improvement, particularly for European Secured Notes, which could offer both banks and SMEs funding benefits.

Political uncertainty, a challenging fiscal outlook, and the rising divergence in funding conditions between France and other core euro area sovereign borrowers underscore the importance for political stability and reform efforts to reduce the deficit.

Scope Ratings has updated its GRE Rating Methodology following the call for comments period, which concluded on 29 July 2024. The methodology changes are not expected to impact any current ratings.

Electoral success of populist far-right and far-left parties in Thuringia and Saxony highlights Germany’s fragmenting political landscape as mainstream parties lose ground. Looming policy uncertainty could delay regional budgets and slow economic growth.

Tuesday, October 15th 2024 - 3:00 PM (CEST)

Giving depositors preference in insolvency and harmonising national deposit guarantee schemes are among proposed steps to improve the process for dealing with failing banks. They also edge towards the goals of the European Deposit Insurance Scheme (EDIS).

Debt markets are slowly reopening for Europe’s commercial real estate companies, but investor confidence is yet to recover to pre-2022 levels given the prevalence of high leverage, heavy capital expenditure and questions over governance at some issuers.

Corporate defaults across Europe are likely to continue rising in the months ahead before stabilising around year-end as financing conditions ease on stronger economic growth, more subdued inflation and companies’ self-help measures.

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.

Profits at the Russian operations of RBI, UniCredit, and OTP Bank, the European banks with the highest exposures to Russia, continue to increase despite regulatory pressure to expedite exit plans.