• About
  • Subscribe
  • Contact
Thursday, March 30, 2023
    Login
FutureCFO
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
FutureCFO
No Result
View All Result
Home Business Insights

Moody’s: Coronavirus, oil price shock to magnify weaknesses outlined in negative 2020 sovereign outlook

FutureCFO Editors by FutureCFO Editors
March 24, 2020
coronavirus

Photo by Obi Onyeador on Unsplash

The coronavirus outbreak and the related oil price shock will lower sovereigns' economic and fiscal strength, increase weaker sovereigns' vulnerability to shifts in sentiment and expose weaknesses in domestic and international institutions, Moody's Investors Service said recently.

As with other sectors, Moody's will adjust ratings to reflect changes in credit risks profiles that the rating agency considers to be unlikely to fully recover within the next few years, and those with higher default risk, the rating agency noted.

Moody's currently assumes that the crisis, however severe, will be relatively short-lived and that growth will resume in the second half of the year. 

In that scenario, given their particular credit strengths, the rating implications of the crisis for global sovereigns are likely to be relatively limited, the firm said.

"Sovereigns can weather storms others cannot," said Sarah Carlson, a Moody's senior vice president. ”Generally speaking, they have deep pockets, wide sources of revenues and funding, often including supportive banking systems, and the unique ability to determine which expenditure obligations they meet without sanction."

Thus, for now at least, material credit and rating consequences are expected to be focused on weaker sovereigns or on those facing idiosyncratic challenges, probably relating to weak institutions or ineffective policymaking, Moody’s pointed out.

"That said, our assumptions about the impact of the crisis are dynamic and could change. If damage to growth were to be more severe and protracted, with debt rising rapidly and access to affordable financing reduced, the credit implications for sovereigns would be more profound,” Carlson said.

Related:  State of the CFO role
Tags: coronavirusMoody's
FutureCFO Editors

FutureCFO Editors

No Result
View All Result

Recent Posts

  • Bupa appoints interim CFO for APAC
  • Asia Pacific private equity deal value down 44% in 2022
  • Investment planning: Sustainability metrics to be CFO’s standard practice by 2026
  • Rein in rogue spending by automating accounts payable
  • Is your people strategy human enough?

Live Poll

Categories

  • Artificial Intelligence
  • Audit and Compliance
  • Automation
  • Big Data
  • Blockchain
  • Business Applications
  • Business Insights
  • Case Studies
  • Cloud, Platforms and Ecosystems
  • Competencies and Capabilities
  • Digital Transformation
  • eBooks and eBriefs
  • Finance Accounting and Reporting
  • Future Technology
  • General
  • Infographics
  • Leadership and Roles
  • Mergers and Acquisitions
  • Operational Accounting and Control
  • Operations
  • Polls and Surveys
  • Resources
  • Risk and Regulation
  • Strategies and Tactics
  • Tax Management and Optimization
  • Technology
  • Treasury and Cash Management
  • Videos/Tutorials
  • Webcasts/Podcasts
  • White Papers

Strategic Insights for Finance Executives

FutureCFO.net is about empowering the CFO and the Finance Team to take on the leadership position in the digitalization of the enterprise. It's more than just a portal for the exchange of industry best practices, it is about creating and growing a community of finance professionals able to share learned experiences, providing a platform for the current and next generation of finance leaders and professionals.

Quick Links

  • Videos
  • Resources
  • Subscribe
  • Contact

Cxociety Media Brands

  • FutureIoT
  • FutureCFO
  • FutureCIO
  • Privacy Policy
  • Terms of Use
  • Cookie Policy

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
Login

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Login to your account below

or

Not a member yet? Register here

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In