So it begins. Proper doom. Yeah yeah they did not predict the credit bubble, but you better be sure everyone listens to them nonetheless.
source: https://www.theguardian.com/business...eurozone-pmis-
Rating agency Moody’s has sounded the alarm over Britain’s consumer credit market.
It has downgraded the outlook on bonds backed by credit card customers, buy-to-let mortgages and car loans, and warned that some British borrowers will struggle to repay their debt as the economy weakens, and inflation eats into their salaries.
In a new report Greg Davies, Moody’s assistant vice president, says:
“Household debt is high and still growing, leaving consumers vulnerable to an economic downturn, while higher inflation, weaker wage growth and levels of indebtedness leaves those in lower-income brackets the most exposed.”
“An additional challenge is that households’ capacity to draw on savings to maintain consumption and/or service their consumer debts has significantly diminished.”
As a result, Moody’s has downgraded the collateral outlooks on most ‘UK structured finance sectors’ to negative.
It has downgraded the outlook on bonds backed by credit card customers, buy-to-let mortgages and car loans, and warned that some British borrowers will struggle to repay their debt as the economy weakens, and inflation eats into their salaries.
In a new report Greg Davies, Moody’s assistant vice president, says:
“Household debt is high and still growing, leaving consumers vulnerable to an economic downturn, while higher inflation, weaker wage growth and levels of indebtedness leaves those in lower-income brackets the most exposed.”
“An additional challenge is that households’ capacity to draw on savings to maintain consumption and/or service their consumer debts has significantly diminished.”
As a result, Moody’s has downgraded the collateral outlooks on most ‘UK structured finance sectors’ to negative.
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