COVID-19 and the oil price shock of 2020 are taking a heavy toll on global banks, APA reports.
S&P Global Ratings has taken 335 negative rating actions globally since the outbreak began, and we anticipate it will be difficult for the financial strength ratings on financial institutions to return to pre-crisis levels.
Agency doesn't expect the world's largest banking sectors, including more than half of G20's, to recover to pre-COVID-19 levels until 2023, or beyond.
The hit on financial institutions globally has been unambiguously negative. The agency's negative rating actions since March 1, 2020, to Sept. 7, 2020, include 234 rating actions on banks and 101 rating actions on nonbank financial institutions (NBFIs).
Most rating changes are outlook revisions (236, or 70% of total rating actions). Rating downgrades and negative CreditWatch placements account for the remainder.