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.

French banks’ profits will grow moderately in 2025, supported by net interest income and commissions, notably in corporate and investment banking. But improvements in profitability could be slowed by the subdued performance of the domestic economy.

The impact of higher financial and political volatility on Türkiye’s credit ratings will mostly depend on the effectiveness of the monetary policy response and the consequences of any potential shifts in domestic economic policy.

The proposed update refines and further clarifies Scope’s approach. Scope is calling for comments on the methodology by 27 April 2025. The methodology as proposed might have a limited negative impact on the outstanding ratings of two issuers.

We expect a modest deterioration in EU banks’ asset quality, mainly driven by rising pressures in the EU corporate sector. But a worsening of the global operating environment could accelerate this deterioration, increasing credit risks for the banks.

Rearming Europe is set to boost demand for the region’s defence companies but will test the sector’s fragmented production capabilities, R&D, supply chains, and access to capital, says Scope Ratings.

Wednesday, April 9th 2025 - 11:00 AM (CEST)

Germany’s ample fiscal space to finance higher defence spending by issuing debt contrasts with the more constrained public finances in France and the United Kingdom unless both governments make significant budgetary adjustments.

While Spanish banks achieved record profitability in 2024, Q4 results suggest that net interest margins and customer spreads have peaked. Increasing fees and commissions will be key to profitability, given lower rates and competitive pressure on lending.