<\/p>\n
Defaults, delinquencies poised to rise for rate-sensitive borrowers.<\/p>\n
With the economy slowing and rate cuts still in the distance, U.S. credit conditions are expected to deteriorate in the second half, says Fitch Ratings in a new report.<\/p>\n
The rating agency noted it is expecting a weaker credit environment for the balance of the year as growth slows and labour market conditions soften.<\/p>\n
Fitch is forecasting annual growth to slow to 2.1% for the full year, down from 2.5% last year.<\/p>\n
\u201cConsumer spending growth has been holding up well and will likely be tempered as nominal wage and job growth slows,\u201d it said.<\/p>\n
Against this backdrop, Fitch is expecting a \u201csoft landing\u201d for the U.S. economy, with the U.S. Federal Reserve Board starting to cut rates in September and again in December.<\/p>\n
\u201cDelinquencies and defaults will continue to rise in the second half for rate-sensitive borrowers, including commercial mortgage-backed securities, high-yield\/leveraged loan, and subprime consumers,\u201d it said.<\/p>\n
Specifically, Fitch is projecting higher delinquencies across all major commercial real estate sectors in the second half.<\/p>\n
It also raised its default rate forecasts for leveraged loan issuers to between 5.0% and 5.5% for 2024, \u201cas high interest rates are pressuring highly levered issuers\u2019 liquidity positions and ability to service debt.\u201d<\/p>\n
High-yield defaults are also expected to range between 5.0% and 5.5% for the year.<\/p>\n
Despite the expected increase in defaults, Fitch said its credit rating outlooks for North American sectors \u201care split fairly evenly between neutral and deteriorating.\u201d<\/p>\n
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Defaults, delinquencies poised to rise for rate-sensitive borrowers. With the economy slowing and rate cuts still in the distance, U.S. credit conditions are expected to deteriorate in the second half, says Fitch Ratings in a new report. The rating agency noted it is expecting a weaker credit environment for the balance of the year as […]<\/p>\n","protected":false},"author":1,"featured_media":2244,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2243","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/08\/USA-4-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/08\/USA-4-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/08\/USA-4-300x225.jpeg",300,225,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/08\/USA-4.jpeg",2400,1800,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=2243"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2243\/revisions"}],"predecessor-version":[{"id":2245,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2243\/revisions\/2245"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/2244"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=2243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=2243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=2243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}