The 2020 outlook for GCC non-financial corporates has turned negative from stable, said Moody’s, adding that its maintains its negative outlooks for Turkish and South African non-financial corporates.
Muted economic growth, heightened geopolitical risk and policy unpredictability are the main drivers of negative outlooks, it added.
Key takeaways:
• Low non-oil GDP growth and volatile oil prices will limit governments' ability to fund growth initiatives in GCC countries.
• Slow policy reforms and uncertainty will continue to hamper consumer sentiment and business confidence and lead to muted economic growth in South Africa.
• Geopolitical tensions and a fragile operating environment will continue to weigh on corporates in Turkey.
• The credit quality of most of our rated corporates in these regions will not erode much thanks to healthy balance sheets, leading market positions, adequate liquidity and international revenues.
• Highly rated companies with significant domestic exposure could become constrained by weakening sovereign credit quality. – TradeArabia News Service
Moody’s sees negative outlook for GCC corporates
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