It seems that the classification of global companies is heading towards stability as the global economy has been recovering since COVID-related restrictions have been gradually eased, according to the international credit rating agency Fitch.
Fitch said there are regional differences due to the timing of the spread of the pandemic and the gap in the prospects for economic recovery around the world.
Nevertheless, the share of Fitch’s global portfolio of companies with negative expectations or rating monitoring remains high, the agency said.
The disparate prospects for recovery between countries and companies in the procedures for classification of future companies will become clear during the remainder of 2021, Fitch said.
The report stated that 20 percent of Fitch’s global portfolio of companies still had a negative index (either carrying a negative outlook or rating watch) in the first quarter of this year, compared to 26 percent in the second quarter of 2020.
According to the report, the strong economic momentum in the United States will support the continued stability of expectations and the reversal of the classification in North America.
The percentage of company ratings in the EMEA region with negative expectations or rating monitoring remains significantly higher than pre-pandemic levels.
Big jolt
The global economy was subjected to a major shock during 2020, which witnessed closures due to the pandemic, which cast negative credit ratings on companies around the world.
Fitch is a wholly owned subsidiary of Hearst. On April 12, 2012 Hearst increased its stake in the Fitch Group to 50%, which is one of the three major rating companies besides Standard & Poor’s and Moody’s.
The company was incorporated by John Knowles Fitch on December 24, 1913 in New York City as Fitch Publishing Company, and merged with the London-based IBCA Company in December 1997 of Fitch Limited.
Fitch is dual headquartered in New York, USA, and London, UK.
On April 12, 2012, Hearst increased its stake in the Fitch Group to the previous 50%.
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