The credit rating agency S&P Global predicted on Monday a new increase in default rates (default) in the United States and Europe next year, following the rapid increase in interest rates global.
S&P Global said the main risks to 2024 were a long period of high real interest rates, causing deeper-than-expected recessions, or that real estate markets of the main economies begin to weaken significantly.
“Defaults are likely to continue rising, up to 5% in the United States and 3.75% in Europe, above long-term historical trends,” the rating agency stated in a new report.
“We expect to see further credit deterioration in 2024, largely at the lower end of the ratings scale, where about 40% of credits “They run the risk of suffering reductions.”
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Source: Gestion
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