Operating performance and credit metrics for U.S. captives are expected to continue to normalize following record profitability in 2021 and much of 2022, according to Fitch Ratings. Net interest margins will decline toward pre-pandemic levels given...
Read Story
July 18, 2023, 07:20 AM
|
Nearly three quarters of North American sectors maintain a deteriorating outlook for 2023, reflecting Fitch Ratings’ expectation for weaker core credit drivers relative to 2022. Inflation, rising rates and tightening lending conditions remain key...
Read Story
July 03, 2023, 07:12 AM
|
While the recent and sudden deterioration of several U.S. banks has been most impactful to the depositors, shareholders and lenders to these institutions, non-bank financial institutions, insurance companies and funds have experienced a variety of...
Read Story
March 17, 2023, 07:20 AM
|
GATX Corporation announced that Fitch Ratings has assigned the Company a BBB+ Long-Term Issuer Default Rating (IDR) with a stable outlook, a BBB+ senior unsecured debt rating, an F2 short-term IDR and an F2 commercial paper rating.According to...
Read Story
January 31, 2023, 06:00 AM
|
The Aerospace & Defense (A&D) sector outlook is improving, as favorable demand dynamics should lead to increasing cash flows and deleveraging capacity beginning in 2023, Fitch Ratings said. It expects generally stable ratings across the sector in...
Read Story
December 05, 2022, 07:12 AM
|
The 2021 institutional U.S. loan default rate forecast has been lowered to 1.5 percent from 2.5 percent, reflecting continued capital market confidence as constricted sectors re-open, according to a new Fitch Ratings report."The anticipated 1.5...
Read Story
June 24, 2021, 07:15 AM
|
U.S. equipment ABS performance has notably improved in 2021 following elevated delinquencies and defaults in 2020, Fitch Ratings says. Overall, payment deferral programs have successfully assisted obligors during the pandemic, followed by strong cure...
Read Story
May 27, 2021, 07:20 AM
|
Fitch Ratings' review of nearly 180 global non-bank financial institutions (NBFIs) since March in response to the coronavirus pandemic found balance-sheet intensive business models face greater pressure in 2020 than more balance-sheet light...
Read Story
July 28, 2020, 07:05 AM
|
Global aircraft lessors' recent first quarter financial results confirm issuers' continued efforts to maintain sufficient liquidity amid the economic fallout from the coronavirus pandemic, Fitch Ratings says. The pandemic has caused significantly...
Read Story
June 01, 2020, 07:20 AM
|
Fitch Ratings has revised its 2020 asset performance outlook for equipment lease ABS to negative from stable due to the economic effects of the coronavirus. Equipment loan and lease obligors, both large corporate and small commercial businesses, will...
Read Story
April 14, 2020, 07:25 AM
|
Fitch Ratings completed a rating review of global aircraft lessors, resulting in five issuers' Rating Outlooks being revised to Negative from Stable, one issuer being placed on Rating Watch Negative and one issuer being downgraded by one notch and...
Read Story
March 25, 2020, 06:59 AM
|
Fitch Ratings has revised its sector Asset Performance and Ratings Outlooks for aircraft and engine asset-backed securities (ABS) to “Negative” from “Stable-to-Negative.” This change reflects material downside risks from the global spread of the...
Read Story
March 24, 2020, 07:04 AM
|
Fitch Ratings has revised its sector outlook for global aircraft lessors to negative from stable, reflecting elevated downside risks from the global spread of the coronavirus. The dramatic reduction in global travel demand is already increasing...
Read Story
March 17, 2020, 07:00 AM
|
The Wuhan coronavirus is expected to have a minimal impact on aircraft lessor and ABS ratings in the near term given the relative diversity of customer bases, solid cash flow generation derived from long-term leases and the fact that current ratings...
Read Story
January 30, 2020, 07:20 AM
|
Fitch Ratings remains cautious amid the longer term normalization of the aircraft lessor market, as future lessor profitability could be tested by competitive dynamics, the placement risks of large order books and the potential for further airline...
Read Story
January 20, 2020, 07:05 AM
|
Airline credit risk and heated competition in the leasing industry will test aircraft lessors' ability to adequately service asset-backed securities (ABS) in 2020, including repossessing and remarketing aircraft and placing them back on lease while...
Read Story
January 15, 2020, 07:15 AM
|
The 2020 sector and Ratings Outlooks for North American finance and leasing companies (FLCs) are stable, according to Fitch Ratings. The solid, albeit slowing, macroeconomic environment is expected to result in consistent credit loss performance and...
Read Story
November 22, 2019, 07:25 AM
|
Fitch Ratings has upgraded CIT Group Inc.'s (CIT) and CIT Bank, N.A.'s (CIT Bank) Long-Term Issuer Default Ratings (IDRs) and to 'BBB-' from 'BB+'. The Viability Ratings (VRs) for both entities were also upgraded to 'bbb-' from 'bb+'. The Rating...
Read Story
November 13, 2019, 07:05 AM
|
While U.S. core ABS performance remains strong due largely to low unemployment, many investors are zeroing in their questions on some of the sector's non-core assets, according to Fitch Ratings in its 2019 Virtual Investor Video Series for structured...
Read Story
July 30, 2019, 07:00 AM
|
The trade war is weighing on investment prospects and has sharply increased downside risks to world economic growth forecasts, Fitch Ratings says in its new Global Economic Outlook (GEO)."Even though our base case assumes that further US tariffs on...
Read Story
June 21, 2019, 07:05 AM
|
Alternative investment managers (Alt-IMs) have become increasingly active investors in the aircraft leasing industry as they seek to deploy capital into a growing sector that could provide attractive investment returns. However, Fitch Ratings notes...
Read Story
February 04, 2019, 07:15 AM
|
Aircraft lessors continue to benefit from largely favorable market conditions, including above-average air traffic growth, increasing operating lease penetration, demand for aircraft across the age spectrum and accessible funding markets, according...
Read Story
September 21, 2018, 07:01 AM
|
Bankruptcies remain a rare occurrence for companies in the Aerospace & Defense (A&D) and Industrial & Manufacturing (I&M) sectors, according to a new report published by Fitch Ratings.High-yield bond default rates for A&D and I&M companies averaged 1...
Read Story
August 09, 2018, 07:00 AM
|
New financial reform legislation easing the Dodd-Frank Act (DFA) for smaller and custodial banks is not likely to be a near-term ratings issue but could be negative for some banks' credit profiles over the long term, if it results in significantly...
Read Story
May 29, 2018, 07:20 AM
|
A strong secondary market for midlife commercial aircraft coupled with gradual deliveries of new generation airplanes have reduced the average age of aircraft lessors' owned portfolios, Fitch Ratings said. This is a positive for the aircraft leasing...
Read Story
April 03, 2018, 07:20 AM
|
A bill easing financial regulations for US small to mid-size banks is not likely to be a near-term ratings issue, but over time could have negative credit-profile implications for banks particularly as it relates to capitalization, liquidity, risk...
Read Story
March 26, 2018, 07:00 AM
|
Two large equipment leasing subsectors whose performance is closely tied to global trade volumes -- containers and containerships -- have recovered meaningfully since the 2015 downturn, Fitch Ratings said. Despite some uncertainties on the horizon...
Read Story
March 23, 2018, 07:15 AM
|
The commercial fleet and truck leasing sectors are in solid shape and will remain so in 2018 in spite of some broader sector obstacles, according to Fitch Ratings in a new report. As its most recent review of fleet lessors back in October concluded...
Read Story
January 05, 2018, 07:08 AM
|
The Rating Outlook for finance and leasing companies (FLCs) globally in 2018 is Stable, Fitch Ratings says. The Stable Rating Outlook reflects modest leverage across most sub-sectors, adequate liquidity profiles, and the generally muted impact of...
Read Story
November 16, 2017, 07:11 AM
|
Aircraft lessors continue to consolidate and form new partnerships to improve scale and meet rising demand for air traffic, according to Fitch Ratings in its latest North American Financial Institutions Chart of the Month. In April 2017, Avolon...
Read Story
September 28, 2017, 07:05 AM
|
Generally favorable industry dynamics have been supportive of aircraft leasing company credit profiles thus far in 2017 and should continue to be supportive throughout the remainder of the year and into 2018, according to Fitch Ratings. A combination...
Read Story
September 22, 2017, 07:04 AM
|
Smaller aircraft lessors have increasingly sponsored global aircraft ABS during the last 18 months, while larger, established lessors have sought financing elsewhere. More participation from new, less established lessors is leading to changes in the...
Read Story
September 18, 2017, 07:08 AM
|
As the diversified industrial and capital goods sectors begin to recover, there are a number of risks to credit improvement, according to Fitch Ratings. These include mergers and acquisitions, activist investors, shareholder-friendly actions, and the...
Read Story
July 14, 2017, 07:10 AM
|
Container shipping companies have benefited from a modest increase in freight rates since the start of the year, but a sustainable recovery in the container market will only be achieved by reaching a viable supply/demand balance through capacity cuts...
Read Story
June 20, 2017, 06:47 AM
|
Captive finance companies are likely to face continued pressure on profitability due to rising credit losses, declining residual values and higher funding costs, according to a review of U.S. Captive Finance Companies from Fitch Ratings. In addition...
Read Story
June 15, 2017, 07:08 AM
|
Most U.S. banks should see an earnings boost from a rising interest rate environment over the next several years, according to Fitch Ratings. However, not all banks will be beneficiaries, and the potential impact will depend on individual bank's...
Read Story
April 14, 2017, 07:08 AM
|
A significant proportion of U.S. non-bank financial institutions (NBFIs) would be adversely affected by an accelerated and higher-than-anticipated increase in U.S. interest rates, says Fitch Ratings. The impact on U.S. NBFIs of U.S. interest rates...
Read Story
April 12, 2017, 07:15 AM
|
SS&C Technologies Holdings, a global provider of financial services software and software-enabled services, announced the availability of Fitch credit ratings to its popular managed data service SVC. Fitch Solutions is a leading provider of credit...
Read Story
January 20, 2017, 07:03 AM
|
Fitch Ratings launches its Ratings Navigator for Non-Bank Financial Institutions (NBFIs) - a visual overview of all the factors affecting an NBFI's standalone rating, their relative importance and likely direction of movement. "Ratings Navigator is a...
Read Story
January 19, 2017, 07:12 AM
|
Aircraft leasing companies are poised for favorable industry dynamics in 2017 and should benefit from strong growth of global air traffic, according to a new report from Fitch Ratings. Moderate increases in energy prices will reduce airline...
Read Story
January 13, 2017, 07:04 AM
|
Asset quality and residual value reversion will loom over many consumer and commercial finance and leasing companies (FLCs) globally, underpinning Fitch's negative sector outlook for 2017. That said, manageable leverage across most issuers...
Read Story
November 15, 2016, 07:09 AM
|
Donald Trump's presidential victory, in combination with Republicans maintaining control of Congress, reinforces the central role that legislative and regulatory event risk play for certain segments of the U.S. corporate healthcare industry...
Read Story
November 10, 2016, 07:17 AM
|
Fitch Ratings expects to assign the following ratings and Outlooks to the Ascentium Equipment Receivables 2016-2 Trust (ACER 2016-2) notes:
$62,000,000 class A-1 notes 'F1+sf';
$101,000,000 class A-2 notes 'AAAsf'; Outlook Stable;
$60,007,000...
Read Story
October 14, 2016, 07:02 AM
|
Aircraft lessors around the world continue to benefit from increased air travel, strong airline profitability, low interest rates and generally accessible funding markets, according to Fitch Ratings' latest North American FI Chart of the Month and...
Read Story
September 20, 2016, 07:06 AM
|
The FASB's new standard on accounting for credit losses on financial instruments will affect U.S. banks' reserving practices, says Fitch Ratings. However, it will be manageable as banks have adequate time to prepare for implementation. The new...
Read Story
July 21, 2016, 07:13 AM
|
Debtor-in-possession (DIP) financings are frequently being left out of the equation for the current crop of bankrupt energy firms as many opt for pre-negotiated bankruptcy plans to speed up the restructuring process and rely on cash, according to...
Read Story
May 24, 2016, 07:02 AM
|
The reversal of the commodity super cycle continued to discourage capital spending and depress results for diversified industrials and capital goods manufacturers in first-quarter 2016, according to Fitch Ratings. End-markets such as mining, oil and...
Read Story
May 11, 2016, 07:00 AM
|
Fitch Ratings has affirmed NewStar Financial, Inc.'s (NewStar) long- and short-term Issuer Default Ratings (IDRs) at 'BB-' and 'B', respectively, as well as the senior unsecured debt at 'BB-' and subordinated debt ratings at 'B'.The rating...
Read Story
April 18, 2016, 07:00 AM
|
Wells Fargo & Company (WFC) reported $5.5 billion in net income for a return on assets (ROA) of 1.21%, down 2% on a linked-quarter basis and down 6% from a year ago, according to Fitch Ratings. Earnings were impacted by an expected energy-related...
Read Story
April 15, 2016, 07:38 AM
|
Fitch Ratings believes asset quality for business development companies (BDCs) could deteriorate further in 2016 following challenging energy performance in 2015, according to Fitch's latest North American Financial Institutions Chart of the Month....
Read Story
March 21, 2016, 07:18 AM
|
Recent leveraged loan price volatility presents increased risks and opportunities for CLO managers, Fitch Ratings says. Managers in volatile markets are challenged to make credit calls that may significantly affect long-term performance for CLO...
Read Story
December 29, 2015, 06:58 AM
|
Asset quality reversion, growing regulatory scrutiny and profitability pressures are among the challenges facing finance and leasing companies (FLCs) globally in the coming year, supporting Fitch Ratings' negative sector outlook for 2016. The Rating...
Read Story
December 04, 2015, 07:16 AM
|
Now that the Fed has maintained its near-zero target rate, most U.S. banks will remain very attentive to their cost structures given the expectation of flat to lower asset yields going forward, says Fitch Ratings. Moreover, Fitch expects many highly...
Read Story
September 21, 2015, 07:04 AM
|
Fitch Ratings today published an updated Asset-Backed sector specific criteria report titled 'Criteria for Rating U.S. Equipment Lease and Loan ABS.' There have been no material changes from the previous version; therefore, Fitch expects no impact on...
Read Story
December 24, 2014, 07:03 AM
|
Fitch Ratings has assigned 'BB+/B' long- and short-term IDRs to CIT Group, Inc. (CIT) and CIT Bank. The Rating Outlook is Stable. KEY RATING DRIVERS - IDRs, VRs, Senior Debt and Revolving Credit Facility The IDRs and Viability Ratings (VRs) reflect...
Read Story
December 05, 2014, 06:58 AM
|
U.S. financing and leasing companies (fincos) will likely face multiple headwinds in 2015, including increased competition, weaker asset quality, reduced reserve releases, and regulatory challenges that could impact profitability, according to Fitch...
Read Story
November 19, 2014, 07:04 AM
|
Full U.S. adoption of International Financial Reporting Standards (IFRS) appears unlikely to occur in the intermediate-term as the major accounting standard setters continue to move away from full convergence of their standards, according to a Fitch...
Read Story
July 09, 2014, 06:37 AM
|
According to Fitch Ratings, recent decisions by large aircraft-leasing companies to write down the value of certain older, uncompetitive aircraft fleet types in response to shifting global supply-and-demand fundamentals highlight asset quality risks...
Read Story
November 14, 2013, 06:16 AM
|
The U.S. electric utility industry faces an ongoing period of low sales growth, challenging their traditional operating profiles and forcing utilities to broaden their product offerings, according to a Fitch Ratings report. Electricity efficiency...
Read Story
October 28, 2013, 06:55 AM
|
The near-term fiscal challenges facing states and municipalities present a distinct risk, Fitch Ratings says.In the five years after the Great Recession, most states and municipalities have seen pronounced drops in revenue followed by a slow growth...
Read Story
September 16, 2013, 06:50 AM
|
Fitch Ratings expects lessors to face significant challenges in applying the new rules, but the impact on economic fundamentals in the leasing industry will be limited.Off-balance sheet treatment, which would end for most lessees under the terms of...
Read Story
July 18, 2013, 06:59 AM
|
According to Fitch Ratings, captive finance subsidiaries of major global manufacturers (captives) have continued to report very strong profit margins, driven by outstanding credit-loss performance and improved demand for their parents' products....
Read Story
May 22, 2013, 07:05 AM
|
An ongoing dispute among major aircraft leasing companies, local Indian authorities, and Kingfisher Airlines, which has been grounded since late last year, provides some critical insights into risk factors for lessors seeking to safeguard interests...
Read Story
April 24, 2013, 06:02 AM
|
According to Fitch Ratings, approval of a Financial Accounting Standards Board (FASB) proposal on the treatment of credit losses for loans and other financial assets could eventually force U.S. banks to book expected losses early, putting pressure on...
Read Story
March 14, 2013, 07:15 AM
|
According to Fitch Ratings, the agreement by regulators to change the definitions and stress assumptions in the Liquidity Coverage Ratio (LCR), delay its full implementation and allow banks to use their liquidity buffer in times of stress sets a more...
Read Story
January 09, 2013, 07:31 AM
|
The revenue outlook for truck leasing firms is undergoing a shift as truck operators begin to re-assess the economics of long-term leasing opportunities, according to Fitch Ratings. Demand for short-term commercial truck rentals has been relatively...
Read Story
December 11, 2012, 07:24 AM
|
The Federal Reserve's 2013 stress test scenarios for U.S. banks, which include a slowdown in Asia's developing economies on top of severe U.S. and euro zone recessions, are still as tough as last year, according to Fitch Ratings. However, we believe...
Read Story
November 19, 2012, 07:00 AM
|
Financing and leasing companies (FLCs) are well positioned from a financial and credit perspective heading into 2013, according to Fitch Ratings. Fitch's outlook covers issuers in both the consumer and commercial financing segments. Sector strengths...
Read Story
November 16, 2012, 07:39 AM
|
According to a news release from Fitch Ratings, the firm believes that loan loss reserve releases by U.S. banks will continue, albeit at a declining pace as banks begin to approach normalized provisioning and net chargeoffs. After building up...
Read Story
November 15, 2012, 07:14 AM
|
Fitch Ratings has downgraded the Issuer Default Ratings (IDR) for Navistar International Corporation (NAV) and Navistar Financial Corporation (NFC) to 'CCC' from 'B-'. The rating Outlook is Negative. A full list of rating actions is shown at the end...
Read Story
September 18, 2012, 08:11 AM
|
According to an article posted on the Fitch web site, Fitch believes the city of Syracuse's objective for requesting a legal expert's opinion on municipal bankruptcy is only informational and it is unlikely that the city will pursue bankruptcy in the...
Read Story
August 10, 2012, 07:00 AM
|
According to Fitch Ratings, long-term credit fundamentals in the aircraft leasing industry are being supported by a number of factors, including growth in global air travel demand, capital constraints among the world's airlines, and the aircraft...
Read Story
July 13, 2012, 06:48 AM
|
The public versions of large banks' so-called "living will" plans, released by U.S. regulators offer few, if any, new details on the process by which banks and regulators would smoothly dispose of assets in a default scenario. Fitch Ratings believes...
Read Story
July 09, 2012, 07:00 AM
|
Fitch believes that capital expenditures by public power entities are likely to remain low until the U.S. economy improves and the many pending environmental regulations become clearer. According to our most recent "U.S. Public Power Peer Study"...
Read Story
June 25, 2012, 07:00 AM
|
Commercial and industrial (C&I) lending by U.S. financial institutions expanded again in the first quarter, but loan balances are growing at a slower rate as business confidence continues to lag in an uneven economic growth environment and...
Read Story
June 01, 2012, 07:30 AM
|
Fitch Ratings notes that an uptick in unsecured bond issuance by aircraft lessors could signal that the capital markets are once again becoming a viable financing alternative for the sector. Aircraft leasing companies, including International Lease...
Read Story
March 29, 2012, 07:30 AM
|