Stability in Western European Economy Contributes to Improvement of Credit Quality of Highly Profitable Assets : Moodys
Azerbaijan, Baku / Trend / A boom in the economy has contributed to the increase of sale volume in the corporate sector of Western Europe and almost total neutral results of the increase in interest rates. This has considerably improved the quality of credit, according to international rating agency Moodys Investors Service in a new special commentary, Cbonds reports.
To the great surprise of economists, in the second quarter of 2007, the total credit quality indicators rose namely through the non-financing of emitters of assets at a speculative level, and the incomparably high amount of increased rating.
In the majority of cases, ratings increased through success measures on the reduction of shares of loans in the private capital and good financial indicators of the company. These results can be very unexpected amid the increase of interests. "Such positive dynamics in the non-financial speculative sector is explained with presence of favorable factors," analyst of Moodys said.