According to Fitch Ratings, leveraged loan risks to the U.S. banking system are manageable in the near term. However, negative rating actions for banks would become more likely in the event of a significant market disruption.
Fitch Ratings announced it would have a negative view of BDCs that intend to increase their leverage following the passage of the new U.S. $1.3 billion spending bill.
According to a Fitch Ratings report, small to mid-size banks should not experience any ratings issues in the short term following the passage of legislation lessening the burden of financial regulations.
Fitch Ratings downgraded the long- and short-term issuer default ratings for General Electric and GE Capital Global Holdings to “A+” and ‘F1’ from ‘AA-‘and ‘F1+.’
Fitch Ratings placed NewStar Financial’s Long-Term and Short-Term Issuer Default Ratings ‘BB-‘ and ‘B’, respectively, on rating watch evolving following the announcement that First Eagle Investment Management is acquiring NewStar.
In a report, Fitch Ratings noted that stress in the U.S. energy sector should not materially impact the credit profiles of large consumer lenders with national footprints.
Fitch Ratings has downgraded Peabody Energy’s long-term issuer default rating to ‘CC’ from ‘CCC’. Approximately $8.4 billion in face amount of obligations is affected by the rating actions.