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International Public Finance

Global Home > International Public Finance

FAQs on International LRG Criteria Exposure Draft

Fitch Ratings has published a report on frequently asked questions (FAQs) about the agency's International LRG Criteria Exposure Draft. The special report, entitled 'Proposed Local and Regional Governments Criteria: FAQs' is available now.

Experience Credit Outlooks 2019

Our annual Credit Outlooks are now available. We're producing reports, video, webinars, and commentary across all sectors and regions to give you in-depth insight into credit in 2019 and beyond.

International LRG Criteria Exposure Draft

The criteria revisions aim at better expressing why the rating is what it is, through a clear sequence of analytical steps. Fitch rates LRGs in more than 25 countries throughout the world. These criteria revisions aim at assessing the role of the national institutional rules and allowing for unbiased international comparisons, a major challenge in the analysis of LRGs.

webcast

Fitch Proposes Key Changes to International, Local and Regional Government Rating Criteria

Join senior members of Fitch Ratings’ International Public Finance team as they outline key changes to our international, local and regional rating criteria, details of which have just been released in an exposure draft.

Alitalia Acquisition Would Reduce FS's Rating Headroom

Fitch's base case already envisages FS's gross debt rising towards EUR15 billion by 2020, from about EUR12 billion in June 2018, potentially through acquisitions. We do not think that buying all, or a substantial part, of Alitalia's business operations would push debt above this level.

Some Russian Local Governments Might Lose on World Cup

Eleven Russian cities will host the World Cup over the next month. Unlike previous large international sporting events, including the Sochi Olympics in 2014, Universiade 2013 in Kazan and the 2014 World Cup in Brazil, Russian regions and cities managed to avoid significant World Cup-related debt increases. The majority of costs were carried by the federal government and private investors.

Fitch Reviews NDRC/MoF Statement for Potential Impact on Chinese LRG-GREs

Fitch's GRE ratings are - in the vast majority of cases - based on the assessment of many factors, including incentives of the LGs to provide support to the GREs in a wide variety of ways. This assessment does not assume formal recourse, in the nature of an implied guarantee, but rather the level of raised potential for support in extraordinary circumstances. 

Fitch Announces New International Public Finance Appointments

Fitch Ratings is pleased to announce the appointment of Nicolas Painvin as Managing Director and Analytical Head of International Public Finance.

British Columbia's Budget Highlights New Spending and Revenues

British Columbia's Budget 2018, the first full budget released by the new government since taking office in summer 2017, relies on continued economic growth of between 2.3% and 2.0%, and significant revenue measures to fund spending boosts for key policy goals.

Italy LRGs Face Challenges Regardless of Election Outcome

Italian local and regional governments' key long-term challenges will persist regardless of the outcome of March's national elections. The stated policies of all major parties suggest that LRGs will face limited or declining budget flexibility beyond 2018. 

Credit Hotspot: Spanish Regions

Latest: Spanish Regions to See Budgetary Improvement but Upgrade Unlikely

French Departments' Finances Improving but Weaknesses Remain

The improvement shows the departments' dependence on external factors, particularly the real estate and employment markets. Fitch views this as a weakness since the real estate market can be volatile, and hence represents a risk, to varying degrees, for the departments.

Fitch Named Best High Yield, Sovereigns and Public Finance Rating Agency

Fitch Ratings has been recognised as the best credit rating agency in 2017 for high yield, sovereigns, and public finance by The Asset, a Hong Kong-based magazine covering Asia's financial industry since 1999. It is the agency's first wins for the high yield and sovereigns categories, and the third accolade in a row for public finance.

China LRG Data Manipulation Highlights Oversight Problems

Recent admissions of data falsification by some Chinese local and regional governments (LRGs) highlight governance weaknesses within the sector and add to uncertainty over reported fiscal data. We will continue to monitor developments and take rating action, as appropriate, if further examples come to light.

Risks to Watch: China

As part of Fitch’s Risks to Watch video series, Grace Wu, Brian Coulton, Ying Wang and Terry Gao provide a 360-degree view of China in 2018, covering sovereigns, corporates, financial institutions, and public finance.

GRE Exposure Draft

Fitch Ratings held a teleconference discussion on our proposed new methodology for rating entities owned by, or under significant influence from, government sponsors. This exposure draft is the result of a year-long review of our approach to rating these entities. Additional Resources

2018 outlook

Stable Outlook for non-US LRGs in 2018

Nearly 80% of LRGs rated outside the US have a Stable Outlook, while Positive and Negative Outlooks are broadly matched. Budgetary performance remains supportive of overall LRG debt rising to USD6 trillion in 2018 from about USD5.5 trillion in 2017. More Global 2018 Credit Outlooks

Exposure Draft: Government-Related Entities Rating Criteria

There are approximately 180 international ratings of PSEs and 165 SOEs international ratings that will be covered by these criteria and Fitch expects that the proposed criteria revisions will result in a rating downgrade for about 10%-15% and a rating upgrade for about 5% of Fitch's publicly rated GREs.

Currency Volatility Heightens FX Risk for Turkish Metropolitan Municipalities

The metros have been taking out foreign currency-denominated loans for their large capital-intensive investments due to the more favourable terms and conditions not available on the domestic markets. 

Government Support Drives Mass Transit Operators' Ratings

Government support is the main driver of the rating of companies operating mass transport services internationally, such as in London, Paris, Milan, Hong Kong and Santiago. Support largely offsets the different credit profiles, stemming from differing revenue mixes, operating environments and debt burdens.

Higher Tax Growth Helps Laender Budget Consolidation

Strong tax revenues and fiscal consolidation measures have steadily improved the Laender's fiscal performance. Preliminary figures for 3Q17 show that 15 of the 16 Laender achieved net funding surpluses (only North Rhine-Westphalia did not) and that they posted a strong aggregate surplus of EUR12.7 billion, compared with EUR3.6 billion in 3Q16. 

Italy Regional Referendums Rekindle Fiscal Powers Debate

Referendums in Veneto and Lombardy are unlikely to lead to near-term changes in the financial relationship between the two regions and the central government. But they highlight a debate about the devolution of responsibilities, the allocation of associated financial resources, and ultimately the degree of Italian regions' fiscal autonomy.

Operating Spending Restraint Key to French Regions' Debt Sustainability

We expect sustained capex programmes to lead to a further increase in regional debt. Direct risk could range between EUR29 billion and EUR31 billion in 2020, up from EUR24.9 billion in 2016, which is likely to weaken the regions' debt sustainability. 

teleconference replay

Social Housing

Key discussion points: our analytical approach of social housing entitites and the comparisons between the French social housing sector and the UK social housing providers. Listen in French.

Stichting GGZ Noord-Holland-Noord Rated 'A'; Outlook Stable

GGZ-NHN is a leading mental healthcare institution that focuses on the prevention and treatment of severe mental problems and psychiatric disorders. Fitch rates GGZ-NHN on a standalone basis using its Revenue-Supported Rating Criteria.

What Investors Want To Know: Social Housing in France

The social housing sector is particularly important during economic downturns, as it acts as a "natural stabiliser". 
 

Limited Borrowing by UK Local Authorities despite Rising Property Investments

Borrowings by UK Local Authorities (LAs) have so far been limited despite recently rising investment in UK residential and commercial properties, except for few LAs investing over GBP100 million.

Brazil and Argentina State Management Challenges Remain

Several state governments in Brazil and Argentina have taken steps to secure sustainable revenues, which are credit positive. These improvements may substantially raise liquidity levels and lead to lower refinancing risks over the medium term. 

Chinese Local Government Financing Vehicles

Fernando Mayorga, Global Head of International Public Finance, discusses the Chinese local government financing vehicles (LGFVs) sector and recent issuance trends.

Contacts

Dan Champeau

GLOBAL

Dan Champeau

Analytical Group Head

+1 212 908 9188

Ann Flynn

Global

Ann Flynn

Business Group Head

+1 212 908 9152

Fernando Mayorga

Global

Fernando Mayorga

Business Head

+34 93 323 8407

Nicolas Painvin

Global

Nicolas Painvin

Sector Head

+33 1 44 29 91 28

Christophe Parisot

EMEA

Christophe Parisot

Analytical

+ 33 1 44 29 91 34

Beatrice Hue

EMEA

Beatrice Hue

Business

+33 1 44 29 91 72

Humberto Panti Garza

LatAm

Humberto Panti Garza

Analytical

+52 81 8399 9100

Fabio Astolfi

LatAm

Fabio Astolfi

Business

+55 11 4504 2210

Terry Gao

APAC

Terry Gao

Analytical

+852 2263 9972