Europe Credit Markets Update - 2Q 2020 - S&P Global
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Europe Credit Markets
Update – 2Q 2020
Sarah Limbach, Economist – Credit Markets Research
sarah.limbach@spglobal.com
Sundaram Iyer, Senior Analyst – Research
sundaram.iyer@spglobal.com
Sudeep Kesh, Head of Credit Markets Research
sudeep.kesh@spglobal.com
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Highlights
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Europe Financing | Limited Risk Aversion
(bps)
GFC Median GFC High Beginning of 2020 COVID High Most Recent – European spreads fell substantially
from their peak during the Global
2500 Financial Crisis and the COVID19 peak in
2326
March, thanks to swift and important
fiscal and monetary responses. Spreads
2000 for European speculative-grade issuers
increased considerably, as high
uncertainties around the health and
economic outlook exacerbated
1500 vulnerabilities in credit markets. At this
year’s high, European spec-grade
spreads were nearly three times—
984 around 530 basis points (bps) above the
1000
839 level at the beginning of the year.
– Nevertheless, the recent peak in spreads
506 was less than 40% of what was seen
500
308
during the GFC. More timely and
302
236 stronger monetary and fiscal
132 138
87 responses, notably the ECB’s €1.3
0 trillion pandemic emergency purchase
Europe Investment-Grade Europe Speculative-Grade programme (PEPP) reassured investors
and calmed markets. Consequently,
spreads for speculative-grade decreased
more than 320 bps by mid-June.
Note: Data as of June 23, 2020. “Europe” includes the following countries: Andorra, Austria, Belgium, Bulgaria, Czech Republic, Croatia, Cyprus, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Slovenia, Luxembourg, San Marino, Monaco, Malta, Norway,
ow the line Netherlands, Poland, Portugal, Romania, Spain, Slovak Republic, Sweden, Switzerland, United Kingdom. Source: S&P Global Ratings, S&P Dow Jones Indices, Federal
Reserve Bank of St. Louis (FRED), Bank of America Merrill Lynch.
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($ Bil.) NonFinancial Bond Issuance – Investment-grade issuance
400 2019, Investment-Grade 2019, Speculative-Grade overtook 2019 level in April.
2020, Investment-Grade 2020, Speculative-Grade Issuance picked up strongly
in April following the ECB’s
300
announcement of PEPP on
March 18. This was mainly
200 driven by investment-grade
issuance, which surged in
100
April from March.
– Speculative-grade issuance
remains close to, but below
0
its 2019 level on the back of
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muted activity in March.
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($ Bil.)
Europe Regional New Bond Issuance
Eur ope - Overall Financial Nonfinancials Investment-Grade Speculative-Grade
1,200
1,000
800
600
400
200
0
2016 2017 2018 2019 2020*
C
* Denotes YTD data as of June 16 2020
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Data as of June 16, 2020. Data including both Financials and Non-Financials. Source: S&P Global Ratings; Thomson Reuters.
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Corporate Issuance| Europe
Europe Cumulative Corporate Bond Issuance
($ Bil.)
2009 2015 2017 2019 2020
1,800
1,500
1,200
900
600
300
0
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Data of June 16, 2020. Source: S&P Global Ratings; Thomson Financial.
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Europe Regional New Bond Issuance
1,200
Europe - Overall
1,000
Financial
($ Bil.)
800
Nonfinancials
600
400 Investment-Grade
200 Speculative-Grade
0
2016 2017 2018 2019 2020*
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* Denotes YTD data as of June 16 2020
Europe New Bond Issuance YTD (Through June)
600
Europe -
500 Overall
Financial
400
($ Bil.)
Nonfinancials
300
Investment-
200 Grade
Speculative-
100
Grade
0
2016 YTD 2017 YTD 2018 YTD 2019 YTD 2020 YTD*
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Outlooks
Summary
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Europe| COVID-19 / Oil-Related Rating Actions
COVID-19 / Oil Price Rating Actions By Week
Downgrade Downgrade + CW Change OL Change CreditWatch Negative
70
60
50
40
30
20
10
0
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Number of negative rating actions by week since Feb. 3. Data as of June 16, 2020. Source: S&P Global Ratings
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Europe| COVID-19 / Oil-Related Rating Actions By Sector
% Of Speculative-Grade Outlook / CreditWatch Revisions
% Of Speculative-Grade Downgrades
Aerospace and defense (5) 25% 100%
Automotive (28) 38% 67%
Banks (74) 0% 19%
Building materials (8) 86% 100% – Speculative-grade
Business and consumer services… 80% 100% dominance. More than half
Capital goods (42) 55%
80%
90%
of the negative rating
Chemicals (19)
Commercial and professional… 0%
89%
actions in Europe have been
100%
Consumer products (27) 42% 87% on spec-grade issuers.
Energy (15) 50% 92%
100%
– Banks, insurance, and
Health care (10) 100%
Homebuilders and developers (1) 100% sovereigns were the
Hotels and gaming (12) 67% 89% sectors that didn’t see any
Insurance (3) 0%
ratings actions in the
Media and entertainment (25) 63% 88% speculative-grade space.
Metals and mining (3) 100%
100%
NBFI (13) 89% 100%
Real estate (16) 18% 40%
Retailing (31) 80% 90%
Sovereign (8) 38%
Technology (11) 60% 83%
Telecom (3) 100%
100%
Transportation (28) 53% 62%
Transportation infra (6) 0 33%
Utilities (5) 0 50%
0% 20% 40% 60% 80% 100%
Number in parenthesis signifies total number of negative rating actions in the sector since Feb. 3. Media and entertainment excludes
entities within Hotels and gaming. Data as of June 16, 2020. Source: S&P Global Ratings.
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Europe | COVID-19 / Oil-Related Rating Actions
European banks have the highest count of entities with a negative outlook or placed on CreditWatch due to Covid-19.
This is mainly due to their exposure to vulnerable sectors. Nevertheless, due to their indirect exposure to the
pandemic’s economic impact, downgrade pressure is less immediate than in other sectors. As a result, the sector has
seen comparably few rating actions.
COVID-19 / Oil Price Rating Actions By Sector
Count of Outlook / CreditWatch Revisions Count of Downgrades
80
70
60
50
40
30
20
10
0
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Note: Data includes Sovereign. Data from Feb. 3, 2020 to June 16, 2020. Source: S&P Global Ratings.
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COVID-19 / Oil Price Rating Actions By Month
Downgrade Downgrade + CW Change OL Change CreditWatch Negative
250
200
150
100
50
0
February March April May June*
– Europe saw the most downgrades in April following the surge in CreditWatch and outlook changes
in March. While downgrade counts in May and June clearly decreased, the record number of outlook
changes in April still reflect vulnerability in European credit markets.
– The U.K . (52) and France (24) are the European countries that saw most downgrades between
March and May.
Note: Data includes Sovereign. Data from Feb. 3, 2020 to May 26, 2020. Source: S&P Global Ratings.
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Europe | Rating Distribution
Almost half of the European nonfinancial corporates are rated speculative-grade. Consumer products, media and
entertainment and health care are the sectors with the highest count of single-B rated issuers.
AAA AA A BBB BB B CCC & Lower
0 20 40 60 80 100 120 140
Aerospace & Defense
Automotive
Bank
Capital Goods
Chemicals, Packaging, & Environmental…
Consumer Products
Diversified
NonBank Financial Institutions
Forest Products & Building Materials
Health Care
High Technology
Homebuilders/Real Estate Co.
Insurance
Media and Entertainment
Metals, Mining, & Steel
Oil & Gas
Retail/Restaurants
Sovereign
Telecommunications
Transportation
Utilities
ow the line Data as of June 16, 2020. Media and entertainment includes subsectors media, leisure, lodging and entertainment. Source: S&P Global Ratings.
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Downgrade Potential | Outlook And CreditWatch Distribution
By Sector
Negative CreditWatch% Negative Outlook%
90%
– European banks have a
80%
significant negative
70% bias but no issuers on
CreditWatch negative.
60%
This translates to a
50% less immediate
downgrade potential.
40%
This is due to the
30% sector’s mostly
indirect exposure to
20%
the pandemic’s
10% economic impact,
rather due to its
0% exposure to vulnerable
sectors.
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Data as of June 16, 2020 and exclude sovereign. Media and entertainment includes subsectors media, leisure, lodging and entertainment. Source : S&P Global
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Europe | Downgrade Potential By Sector
Automotive, leisure, lodging and entertainment, and transportation sectors have the highest
downgrade potential in Europe
% Of Speculative-Grade Outlook / CreditWatch Revisions – The sectors with the most
% Of Speculative-Grade Downgrades
downgrade potential are
38%
those most exposed to the
Automotive (28) 67%
economic fallout caused by
Banks (74) 19%
0% COVID-19 and social
Business and consumer… 80%
100% distancing measures
Capital goods (42) 55%
90%
aiming to reduce its spread.
Chemicals (19) 80%
89% – Automotive, media and
Consumer products (27) 42%
87%
entertainment (mostly
Energy (15) 50% subsectors leisure and
92%
100%
lodging), as well as
Health care (10) 100%
transportation are the
67%
Hotels and gaming (12) 89% hardest hit in Europe.
Media and entertainment (25) 63%
88%
– The sectors’ vulnerability is
89%
NBFI (13) 100% reflected by the high
Real estate (16) 18%
40% negative bias, far above the
Retailing (31) 80%
90%
five year-average in most
Technology (11) 83% sectors.
60%
Transportation (28) 62%
53%
0% 20% 40% 60% 80% 100%
Data as of June 16, 2020 and include sectors with more than five issuers only; excludes Sovereign. Media and entertainment excludes entities within Hotels and
gaming. Source : S&P Global Ratings Research.
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Europe | Current Vs Historic Downgrade Potentials
Identifying Downgrade Potential Across Sectors -Europe
90
Auto
80
70
Current negative bias (%)
Ret/Res Med&Ent
60 Transp
OilG
50 CapGds
Bank Aer&D
CP&ES
40 ConsPrd
NonBankFinInst Utils
FP&BM
30 MM&S
HomeRE
Hcare
HiTech
20
Teleco
10
Sov Ins
0
0 10 20 30 40 50 60 70 80 90
Long-term negative bias (%)
Med&Ent – Media & Entertainment, Auto - Automotive, MM&S - Metals, Mining & Steel, ConsPrd – Consumer Products, Ret/Res – Retail/ Restaurants, FP&BM –
Forest Products & Building Materials, HiTech – High Technology, Transp - Transportation, CapGds – Capital Goods, Utils - Utilities, Aer&D – Aerospace & Defense,
FinInst - Financial Institutions, Teleco – Telecommunications, Div - Diversified, CP&ES – Chemicals, Packaging & Environmental Services, OilG – Oil & Gas, HCare -
Health Care, Ins - Insurance, HomeRE – Homebuilders/Real Estate Co., Sov – Sovereign. OL- Outlook; CW-- CreditWatch. Data as of June 16, 2020. Source: S&P
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About 47% of the speculative-grade issuers face Of the riskiest ‘B-’ and below categories, similar to the
downgrade risks while 56% of the risky credits are total picture, leisure, lodging and entertainment as well
vulnerable to credit deterioration as banks and consumer products carry the highest count
of negative outlooks and placements on CreditWatch
Negative
Outlook Positive Or Creditwatch Positive
Stable CreditWatch Negative Negative Outlook Stable
Outlook Negative Or Creditwatch Negative
180 Positive Outlook CreditWatch Positive
0 50 100 150
160 Consumer products
Bank
140
Utility
Media/entertainment
120
Health care
Capital goods
100
Insurance
80 Riskiest CP&ES
issuers Home/RE
60 High technology
Telecommunications
40 Financial institutions
Forest
20 Oil & Gas
Retail
0 Transportation
Automotive
+
B-
+
A-
B+
CC B-
CC C
AA
BB
-
A+
-
B+
A
BB B
A
B
C+
C-
CC
AA
BB
AA
BB
AA
BB
CC
BB
Metals/mining/steel
Aerospace/defense
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Ratings Action | Fallen Angels and Potential Fallen Angels
Fallen Angels Average Potential Fallen Angel
– 10 Fallen Angels. Among the 10
35
fallen angels in Europe this year,
30 three each are from the U.K. and Italy.
25 Transportation is the sector that
20 counts most fallen angels in Europe
15 (3).
10 – Potential fallen angels rise. The U.K.
5 has the most potential fallen angels.
0 The sectors with the highest counts
07 008 009 010 011 012 013 014 015 016 017 018 019 020* are financial institutions as well as
C 20 2 2 2 2 2 2 2 2 2 2 2 2 2
media and entertainment, where
Potential Fallen Angels Count (Left) Debt Amount Affected ($ Bil.) mostly corporates impacted by
7 45
COVID-19 related social distancing
6 40 measures are on our list.
35
5
30 – For more information, see The
4 25 Potential Fallen Angels Tally
3 20
15 Reaches A New High At 126,
2
1
10 published June 17, 2020.
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Data as of June 16, 2020. Media and entertainment includes subsectors media, leisure, lodging and entertainment. Source: S&P Global Ratings Research.
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Rated debt amount
Date Issuer To From Sector Country ($ Mil.)
10/9/2001 Railtrack PLC CC A Transportation United Kingdom $3,652
8/14/2002 Vivendi Universal S.A. BB BBB- Media & Entertainment France $16,635
12/9/2003 Parmalat Finanziaria SpA B+ BBB- Consumer Products Italy $7,177
4/19/2004 Adecco S.A. BB+ BBB- Media & Entertainment Switzerland $1,987
Allgemeine Hypothekenbank
10/25/2005 Rheinboden AG (BHW Holding AG) BB+ BBB- Bank Germany $3,908
1/26/2006 TDC A/S BB BBB+ Telecommunications Denmark $4,587
11/21/2007 BAA Ltd. BB- BBB+ Transportation United Kingdom $10,635
10/24/2008 HeidelbergCement AG BB+ BBB- Forest Products & Building Materials Germany $4,822
2/13/2009 Fortis SA/NV (Fortis Group) BB BBB- Bank Belgium $23,237
4/27/2010 Alpha Bank A.E. BB BBB Bank Greece $29,217
2/2/2011 Allied Irish Banks PLC BB BBB Bank Ireland $38,978
8/2/2012 ArcelorMittal BB+ BBB- Metals, Mining & Steel Luxembourg $23,824
11/14/2013 Telecom Italia SpA BB+ BBB- Telecommunications Italy $48,302
5/15/2014 AerCap Holdings N.V. BB+ BBB- Transportation Netherlands $16,800
1/14/2015 Tesco PLC BB+ BBB- Retail/Restaurants United Kingdom $17,195
2/18/2016 Anglo American PLC BB BBB- Metals, Mining & Steel United Kingdom $14,897
7/27/2017 Seagate Technology plc BB+ BBB- High Technology Ireland $4,950
5/9/2018 TDC A/S (DKT Holdings ApS) B+ BBB- Telecommunications Denmark $3,601
6/13/2019 Novomatic AG BB+ BBB- Media & Entertainment Austria $792
4/9/2020 Renault S.A. BB+ BBB- Automotive France $24,979
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Data as of June 16, 2020. Source: S&P Global Ratings Research.
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Ratings Action| Rating Changes From 'B-' To 'CCC' Top 20 By
Debt Amount (YTD)
Debt Amount
Rating Date Issuer Country Sector Rating To Rating From (US $ Mil)
3/30/2020 HNVR Midco Ltd. United Kingdom Media & Entertainment CCC+ B- $2,670
4/1/2020 Kirk Beauty One GmbH Germany Retail/Restaurants CCC+ B- $2,543
4/2/2020 Weatherford International plc Ireland Oil & Gas Exploration & Production CCC+ B- $2,490
Chemicals, Packaging & Environmental
4/20/2020 Diamond (BC) B.V. Netherlands Services CCC+ B- $2,447
Casablanca Global Intermediate British Virgin
3/17/2020 Holdings L.P. Islands Media & Entertainment CCC+ B- $1,900
4/9/2020 Swissport Group S.a.r.l Luxembourg Transportation CCC B- $1,803
5/28/2020 Europcar Mobility Group S.A. France Media & Entertainment CCC+ B- $1,703
4/14/2020 Richmond UK Holdco Ltd. United Kingdom Media & Entertainment CCC+ B- $1,684
3/31/2020 Vallourec France Oil & Gas Exploration & Production CCC+ B- $1,603
Hurtigruten Group AS (Silk Holdings
3/20/2020 Sarl) Norway Media & Entertainment CCC+ B- $1,129
5/29/2020 Technicolor S.A. France High Technology CCC- B- $1,097
5/18/2020 L1R HB Finance Ltd United Kingdom Retail/Restaurants CCC+ B- $995
3/26/2020 Turnstone Midco 2 Ltd United Kingdom Health Care CCC B- $736
6/15/2020 Al Mistral Holdco Ltd. United Kingdom Transportation CCC+ B- $688
3/25/2020 EnQuest PLC United Kingdom Oil & Gas Exploration & Production CCC+ B- $650
4/1/2020 Maxeda DIY Group B.V. Netherlands Retail/Restaurants CCC+ B- $579
6/9/2020 Pro.Gest SpA Italy Forest Products & Building Materials CCC+ B- $566
4/22/2020 Takko Fashion S.a.r.l. Luxembourg Consumer Products CCC+ B- $555
3/24/2020 Thame and London Ltd United Kingdom Media & Entertainment CCC+ B- $518
3/4/2020 Travelex Holdings Ltd. United Kingdom Media & Entertainment CCC B- $515
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Debt volume includes subsidiaries. Note: Red means speculative-grade rating. Data as of June 16, 2020; includes sovereigns. Source: S&P Global
Ratings Research.
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Country Rating Outlook 5 Year CDS Spread Median Rating Financials (OLCW) Median Rating Non - Financials(OLCW)
Austria AA+ Stable A A
Belgium AA Stable BBB+
Bulgaria BBB Stable B+
Czech Republic AA- Stable BBB-
Denmark AAA Stable BBB
Estonia AA- Positive B+
Finland AA+ Stable A- BBB
France AA Stable A BBB-
Germany AAA Stable A+ BB+
Greece BB- Stable B
Iceland A Stable BBB
Ireland AA- Stable A- BBB-
Italy BBB Negative BBB BB+
Jersey AA- Stable B+
Latvia A+ Stable B
Liechtenstein AAA Stable A
Lithuania A+ Stable BBB-
Montserrat BBB- Stable
Netherlands AAA Stable BBB+ BB-
Norway AAA Stable A BBB
Poland A- Stable A- BB+
Portugal BBB Stable BBB-
Romania BBB- Negative B-
Slovenia AA- Stable BBB-
Spain A Stable A- BB+
Sweden AAA Stable A- BBB+
Switzerland AAA Stable A BBB+
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YTD data as of June 16, 2020; includes local / foreign currencies. Blue means investment-grade rating, and grey means NR (not rated).
Source: S&P Global Ratings Research.
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Defaults
Summary
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Ratings Action| Weakest Links and Default Rates
Europe’s Weakest Links rise near record highs, pointing to higher
likely default rates in the near term – Weakest Links. Europe has seen
weakest links rise to 99 issuers
(nearly 19% of the speculative-
Weakest Links Counts (Left) grade rated population).
Weakest Links Share Of Speculative-Grade Population (Right)
Weakest Links are issuers rated
Europe 12 Month Trailing Speculative -Grade Default Rate (Right)
120 25%
‘B-’ and below with a negative
outlook or on CreditWatch with
negative implications; they
100
20% typically have a default rate eight
times that of speculative-grade
80 issuers more broadly.
15%
– For more information, see More
60
Than One-Quarter Of
10% Speculative-Grade Issuers Are
40
Weakest Links published May
5% 14, 2020.
20
0 0%
07
08
09
10
11
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
n-
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
Ju
ow the line
Default Rates as of May 2020. Weakest links and speculative-grade data as of June 16, 2020. Source: S&P Global Ratings Research and S&P Global
Market Intelligence’s CreditPro®.
22
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Ratings Action| Corporate Defaults By Reason & Default
Rate Trend
Missed principal/interest payments Bankruptcy-Related Default Tally (Left)
Regulatory Intervention Distressed Exchanges / Restructuring Europe 12 Month Trailing Speculative -Grade Default Rate (Right)
Confidential
100% 14 10%
90% 9%
12
80% 8%
10 7%
70%
60% 6%
8
50% 5%
6
40% 4%
30% 4 3%
20% 2%
2
10% 1%
0% 0 0%
2013 2014 2015 2016 2017 2018 2019 2020*
*
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
C
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
– Rising Default Rates Defaults this year have already overtaken the previous four years’ count.
– For more information, see More Than One-Quarter Of Speculative-Grade Issuers Are Weakest Links
published May 14, 2020.
ow the line * Default tally data as of June 16, 2020. Default Rates as of May 2020. Source: S&P Global Ratings and S&P Global Market Intelligence’s CreditPro®
23
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One Year Transitions April 2019 to April 2020
– Stability. Issuers rated ‘B+’ and
Rating BBB- BB+ BB BB- B+ B B- CCC/C D below were less stable over the
BBB- 74.76 9.71 2.91 0 0 0 0 0 0
year until April compared to the
BB+ 8.11 66.22 10.81 5.41 0 0 0 0 0
BB 0 1.52 65.15 15.15 1.52 3.03 4.55 0 0 historical average. The major
BB- 0 0 2.78 61.11 15.28 6.94 0 2.78 0 part of movements is to a lower
B+ 0 0 0 1 53 20 9 5 1 rating. This reflects the
B 0 0 0 0 0.41 55.74 23.36 9.02 0.41 vulnerability in European credit
B- 0 0 0 0 0 6.82 51.14 27.27 3.41
CCC/C 0 0 0 0 0 0 2.94 35.29 41.18
markets, mostly on the back of
the economic impact of COVID-
19.
– Defaults are higher in the ‘CCC/C’
One Year Transitions Since 1981 categories when compared to
Rating BBB- BB+ BB BB- B+ B B- CCC/C D
historical averages.
BBB- 68.7 6 1.9 0.4 0.1 0.3 0 0.2 0.1
BB+ 12.8 60.7 9.2 2.8 1.1 0.3 0.1 0.2 0
BB 1.5 11.6 60.9 7.2 2.3 0.6 0.1 0.6 0.2
BB- 0.4 1.1 11.5 57.5 11.7 3 0.6 0.1 0.7
B+ 0.2 0.7 2.3 9.6 56.5 12 2.3 1.4 0.9
B 0.1 0.1 0.2 1.3 6.9 61.6 8.8 3 1.7
B- 0 0 0 0.6 1.2 10.6 52.6 14 5.6
CCC/C 0 0 0 0 0.3 1.7 11 41.3 26.4
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Transition Rates as of May 2020. Source: S&P Global Market Intelligence’s CreditPro®
24
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Additional Details
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Used with accent colors: by using Insert g Header & Footer g Enter / change text g Click Apply All.Issuance| Sovereign Top 20 Deals In 2020 By Debt Amount
S&P Issue- S&P Sovereign Rating Issuance (US
Issue Date Issuer Country Market Place Rating (as of June 16, 2020) Security Description Currency $ Mil.)
5/15/2020 Republic of Italy Italy Euro Public BBB BBB 5 EUR $24,115
Euro market public
4/22/2020 Kingdom of Spain Spain issue NR A 4 EUR $16,298
4/22/2020 Kingdom of Spain Spain EURO/144A NR A 4 EUR $16,145
United Kingdom of Great Domestic
5/12/2020 Britain & Northern Ireland U.K. government debt NR AA 5 GBP $14,886
Euro market public
1/23/2018 Kingdom of Spain Spain issue NR A 1 EUR $12,244
1/23/2018 Kingdom of Spain Spain EURO/144A BBB+ A 1 EUR $12,237
Euro market public
1/15/2019 Republic of Italy Italy issue NR BBB 1 EUR $11,469
Euro market public
1/22/2019 Kingdom of Spain Spain issue NR A 1 EUR $11,371
1/15/2019 Republic of Italy Italy EURO/144A BBB BBB 1 EUR $11,369
1/22/2019 Kingdom of Spain Spain EURO/144A A- A 1 EUR $11,345
1/14/2020 Kingdom of Spain Spain EURO/144A NR A 1 EUR $11,099
Euro market public
4/21/2020 Republic of Italy Italy issue NR BBB 4 EUR $10,873
4/20/2020 Republic of Italy Italy EURO/144A NR BBB 4 EUR $10,825
3/24/2020 Kingdom of Spain Spain EURO/144A A A 3 EUR $10,755
Euro market public
1/10/2018 Republic of Italy Italy issue NR BBB 1 EUR $10,748
1/10/2018 Republic of Italy Italy EURO/144A BBB BBB 1 EUR $10,725
Euro market public
3/24/2020 Kingdom of Spain Spain issue NR A 3 EUR $10,695
Euro market public
2/11/2020 Republic of Italy Italy issue NR BBB 2 EUR $9,843
2/11/2020 Republic of Italy Italy EURO/144A NR BBB 2 EUR $9,775
Federal Republic of
4/29/2020 Germany Germany Domestic auction NR AAA 4 EUR $9,245
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YTD data as of June 16, 2020; includes local / foreign currencies. Blue means investment-grade rating, and grey means NR (not rated).
Source: S&P Global Ratings Research.
26
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S&P Sovereign
Market S&P Issue- Rating (as of Issuance (US
Issue Date Issuer Country Place Rating June 16, 2020) Security Description Currency $ Mil.)
1/13/2020 EFSF Luxembourg Euro Public NR AAA 0.700% Sr Unsecurd Nts due '50 Euro $3,290
4/20/2020 EFSF Luxembourg Euro Public AA AAA Zero Cpn Zero Cpn Sr Nts due '23 Euro $3,281
3/27/2020 Credit Suisse Grp Ag Switzerland Euro Public BBB+ AAA Medium-Term Nts due '30 USD $3,000
United
6/17/2020 BP Capital Markets Plc Kingdom Euro Public BBB AA 0% Perpetual Gtd Sub Bonds Euro $2,811
United
6/17/2020 BP Capital Markets Plc Kingdom Euro Public BBB AA 0% Perpetual Gtd Sub Bonds Euro $2,530
5/26/2020 Total Capital International France U.S. Public A+ AA 3.127% Gtd Global Nts due '50 USD $2,500
United
6/17/2020 BP Capital Markets Plc Kingdom U.S. Public BBB AA 0% Perpetual Gtd Sub Bonds USD $2,500
United
6/17/2020 BP Capital Markets Plc Kingdom U.S. Public BBB AA 0% Perpetual Gtd Sub Bonds USD $2,500
United
3/25/2020 HSBC Holdings PLC Kingdom U.S. Public A AA 4.950% Global Notes due '30 USD $2,497
United
4/14/2020 UBS AG London Kingdom EURO/144A A+ AA 1.750% Sr Unsecurd Nts due '22 USD $2,497
4/1/2020 L-Bank Germany Euro Public AAA AAA 0.625% Guaranteed Bds due '22 USD $2,494
3/10/2020 EFSF Luxembourg Euro Public AA AAA 0.400% Sr Unsecurd Nts due '26 Euro $2,362
Anheuser-Busch Inbev
4/1/2020 SA/NV Belgium U.S. Public A- AA 4.500% Gtd Global Nts due '50 USD $2,248
1/7/2020 ABN AMRO Bank NV Netherlands Euro Public NR AAA 0.375% Sr Unsecurd Nts due '35 Euro $2,221
3/26/2020 Credit Suisse Grp Ag Switzerland Euro Public BBB+ AAA Fix/Flt MTNs due '26 Euro $2,198
United
3/26/2020 Barclays PLC Kingdom Euro Public BBB AA 3.375% Senior Notes due '25 Euro $2,198
United
4/14/2020 UBS AG London Kingdom Euro Public A+ AA 0.750% Sr Med Term Nts due '23 Euro $2,191
Credit Agricole Home Loan
4/1/2020 SFH France Euro Public AAA AA 0.125% Sr Sec Bonds due '24 Euro $2,190
Nederlandse
4/2/2020 Waterschapsbank Netherlands Euro Public NR AAA Zero Cpn Zero Cpn Sr Nts due '23 Euro $2,183
1/30/2020 Credit Suisse AG Switzerland U.S. Public A+ AAA Sr Unsecurd Nts due '22 USD $2,000
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YTD data as of June 16, 2020; excludes Sovereign. Red means speculative-grade rating , blue means investment-grade rating, and grey
means NR (not rated). Table is for foreign currency only without perpetuals. Source: S&P Global Ratings Research.
27
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Rating Debt Amount
Rating Date Issuer Country Sector Rating To From Action Type (US $ Mil)
5/13/2020 Anheuser-Busch InBev S.A./N.V. Belgium Consumer Products BBB+ A- Downgrade $155,580
5/13/2020 HSBC Holdings PLC United Kingdom Bank A- A Downgrade $142,417
4/1/2020 Deutsche Telekom AG Germany Telecommunications BBB BBB+ Downgrade $78,354
3/26/2020 Daimler AG Germany Automotive BBB+ A- Downgrade $72,125
3/26/2020 BMW AG Germany Automotive A A+ Downgrade $65,114
4/24/2020 ENGIE SA France Utility BBB+ A- Downgrade $35,276
4/7/2020 GlaxoSmithKline PLC United Kingdom Health Care A A+ Downgrade $31,395
3/27/2020 Unibail-Rodamco-Westfield SE France Homebuilders/Real Estate Co. A- A Downgrade $30,649
4/23/2020 Commerzbank AG Germany Bank BBB+ A- Downgrade $27,742
6/11/2020 Deutsche Bahn AG Germany Utility AA- AA Downgrade $26,834
4/9/2020 Renault S.A. France Automotive BB+ A- Downgrade $24,979
5/8/2020 Allergan plc Ireland Health Care BBB+ BBB Upgrade $20,236
1/13/2020 Atlantia SpA Italy Utility BB- BBB- Downgrade $16,297
2/21/2020 NXP Semiconductors N.V. Netherlands High Technology BBB BBB- Upgrade $14,800
3/26/2020 Swedbank AB Sweden Bank A+ AA- Downgrade $14,190
1/13/2020 Abertis Infraestructuras S.A. Spain Utility BBB- BBB Downgrade $14,175
5/1/2020 EG Group Ltd. United Kingdom Consumer Products B- B Downgrade $10,443
4/20/2020 Transocean Ltd. Switzerland Oil & Gas Exploration & Production CCC CCC+ Downgrade $9,946
4/20/2020 Valaris plc United Kingdom Oil & Gas Exploration & Production CCC- CCC+ Downgrade $9,550
3/17/2020 International Game Technology Plc United Kingdom Media & Entertainment BB BB+ Downgrade $8,171
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Data as of June 16, 2020, exclude Sovereign, and includes only latest rating changes. Source: S&P Global Ratings Research.
28
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Top 25 Deals Set To Mature Through August 2020
S&P Issuance
Issue - (US $
Issue Date Maturity Date Issuer Country Sector Market Place Rating Security Description Currency Million)
7/10/2013 7/17/2020 EFSF Luxembourg Finance Company Euro Public AA+ 1.625% Medium-Term Nts due '20 EUR 6452.62
6/24/2014 7/15/2020 Wind Acquisition Finance SA Luxembourg Telecommunications EURO/144A BB 4.000% Gtd Sen Sec Nts due '20 EUR 2857.14
7/20/2016 7/25/2020 Teva Pharm Fin Netherlands II Netherlands Healthcare Euro Public BBB 0.375% Guaranteed Bds due '20 EUR 1920.03
6/24/2014 7/15/2020 Wind Acquisition Finance SA Luxembourg Telecommunications EURO/144A BB 4.750% Sr Secured Nts due '20 US 1900
United
7/14/2005 7/21/2020 Network Rail Ltd Kingdom Transportation Euro Public AAA 4.625% Fxd/Straight Bd due '20 STG 1752.04
6/24/2015 6/30/2020 UBS AG Switzerland Banks Euro Public A 1.125% Medium-Term Nts due '20 EUR 1677.15
8/19/2013 8/27/2020 Svenska Handelsbanken AB Sweden Banks Euro Public AA- 2.250% Medium-Term Nts due '20 EUR 1658.05
United
7/15/2015 7/22/2020 Lloyds Bank PLC Kingdom Banks Euro Public NR 0.500% Fxd/Straight Bd due '20 EUR 1639.75
Credit Agricole Home Loan
1/21/2016 8/28/2020 SFH France Banks Euro Public AAA 0.125% Fxd/Straight Bd due '20 EUR 1622.44
7/8/2010 7/16/2020 Intesa Sanpaolo Spa Italy Banks Euro Public A 5.150% Mdm-Trm Sub Nts due '20 EUR 1582.35
5/13/2013 7/15/2020 Unicredit SpA Italy Banks Euro Public BBB Mdm-Trm Sub Nts due '20 EUR 1557.63
6/21/2010 6/29/2020 Nordea AB Sweden Banks Euro Public AA- 4.000% Medium-Term Nts due '20 EUR 1528.66
7/21/2010 7/28/2020 Waha Aerospace BV Govt Gtd Netherlands Finance Company EURO/144A AA 3.925% Gtd Sr Notes due '20 US 1500
United
8/17/2010 8/24/2020 Royal Bank of Scotland (Bond) Kingdom Banks U.S. Public A+ 5.625% Gtd Global Nts due '20 US 1499.21
United
8/5/2010 8/12/2020 HSBC Bank PLC Kingdom Banks EURO/144A AA 4.125% Senior Notes due '20 US 1491.02
6/25/2015 7/1/2020 Capgemini SA France Financial Institution Euro Public BBB 1.750% Senior Bonds due '20 EUR 1398.19
7/12/2013 7/20/2020 GE Capital European Funding Ireland Financial Institution Euro Public AA+ 2.250% Gtd Mdm-Trm Nts due '20 EUR 1302.26
4/24/2013 6/30/2020 Unicredit SpA Italy Banks Euro Public BBB+ Mdm-Trm Sub Nts due '20 EUR 1301.58
4/24/2013 6/30/2020 Unicredit SpA Italy Banks Euro Public BBB+ Mdm-Trm Sub Nts due '20 EUR 1301.58
Nederlandse
7/2/2013 7/9/2020 Waterschapsbank Netherlands Financial Institution Euro Public AAA 1.750% Medium-Term Nts due '20 EUR 1292.45
7/9/2010 7/20/2020 Banque Federative Du Credit France Banks Euro Public A+ 4.125% Medium-Term Nts due '20 EUR 1257.16
6/17/2010 6/24/2020 Total Capital SA France Integrated Oil & Gas U.S. Public AA 4.450% Gtd Global Nts due '20 US 1245.01
United
7/15/2015 7/21/2020 Imperial Brands Finance PLC Kingdom Consumer Products Foreign Public BBB 2.950% Gtd Mdm-Trm Nts due '20 US 1236.46
6/17/2010 6/24/2020 Deutsche Bank AG Germany Banks Euro Public A 5.000% Mdm-Trm Sub Nts due '20 EUR 1234.12
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Data as of June 16, 2020 and excludes Sovereign. Red means speculative-grade rating , blue means investment-grade rating, and
grey means NR (not rated). Table does not include China deals and data is for foreign currency only without perpetuals. Source: S&P 29
Global Ratings Research.
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