S&P Global Ratings – Global Credit Conditions, 4Q 2024

The S&P Global Ratings report for Q4 2024 assesses global credit conditions, focusing on economic resilience amid rising geopolitical risks and evolving policy rates. This quarterly update notes that credit markets remain resilient despite persistent high interest rates and rising geopolitical tensions. Upgrades continue to exceed downgrades, and the default rate has started to moderate, although the pace of decline is slow due to pressures on lower-rated borrowers. While most economies are projected to grow, with the U.S. leading due to robust consumer spending, growth in Europe remains gradual, and China's economy faces challenges due to its struggling property market. The report indicates that high rates are likely to persist longer-term, suggesting stable yields. S&P's analysis provides insight into how financial markets may adapt amid ongoing economic and geopolitical shifts.