Rapidly Deteriorating Shipping Markets Put Pressure On European Bank Ratings

By Harm Semder and Andreas Kindahl, Standard & Poor’s

Rapidly deteriorating conditions in the shipping sector are squeezing the ratings on European banks exposed to the shipping industry. Many shipping companies are struggling following a sharp downturn in global trade and challenging funding conditions. We expect these difficulties to result in a material increase in banks’ loan loss provisions. We see pressure on banks coming from an increasing number of loan defaults, rapidly deteriorating shipping company credit quality, and weaker recovery expectations due to falling asset values. In addition, we believe banks’ capital ratios may decline as deteriorating creditworthiness

This is only an excerpt of Rapidly Deteriorating Shipping Markets Put Pressure On European Bank Ratings

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.