Fitch sees limited credit risks for US corporates post-election

News Image

MG News | August 15, 2024 at 10:14 AM GMT+05:00

0:00

August 15, 2024 (MLN): Fitch Ratings does not foresee immediate credit implications for U.S. corporate issuers from the November 2024 presidential election, despite the wide-reaching nature of federal policy.

Rating actions directly due to federal policy changes are rare. However, significant shifts in climate and social policies could have long-term effects, particularly for the auto, energy, healthcare and utility sectors.

The agency believes corporate credit profiles under a Trump White House would be most affected by trade protectionism, persistent fiscal pressures, climate policy rollback and social policy reform.

Geopolitics and foreign policy, financial deregulation and privatization, and restrictive immigration also affect U.S. corporate credit but usually indirectly, rather than via direct policy application.

A “red-wave” election, where Republicans gain control of the White House and both chambers of Congress, would have the greatest likelihood of material revisions to existing policies on these matters.

All corporate sectors are exposed to varying degrees to changes in presidential administrations and the balance of power in Congress.

The federal government controls sweeping issues like corporate tax rates and anti-trust policy.

Federal policies and regulations can dramatically influence some sectors’ ability to generate profits and cash flow, ultimately affecting asset valuations and capital deployment decisions.

However, passing and implementing new legislation is a lengthy process.

This gives companies time to adjust their business models to mitigate the effects of negative policy outcomes on their financial profiles.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 138,597.36
256.32M
-0.05%
-68.14
ALLSHR 85,286.16
608.38M
-0.48%
-413.35
KSE30 42,340.81
77.13M
-0.03%
-12.33
KMI30 193,554.51
76.19M
-0.83%
-1627.52
KMIALLSHR 55,946.05
305.11M
-0.79%
-443.10
BKTi 38,197.97
16.53M
-0.59%
-225.01
OGTi 27,457.35
6.73M
-0.94%
-260.91
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 117,670.00 121,165.00
117,035.00
-1620.00
-1.36%
BRENT CRUDE 69.23 70.77
69.14
-0.29
-0.42%
RICHARDS BAY COAL MONTHLY 96.50 0.00
0.00
2.20
2.33%
ROTTERDAM COAL MONTHLY 104.50 104.50
104.50
-0.30
-0.29%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.03 67.54
65.93
-0.20
-0.30%
SUGAR #11 WORLD 16.79 17.02
16.71
0.05
0.30%

Chart of the Day


Latest News
July 18, 2025 at 07:21 PM GMT+05:00

Pakistan strengthens UK trade links


July 18, 2025 at 05:36 PM GMT+05:00

Pakistan, China set to advance agricultural innovation


July 18, 2025 at 05:10 PM GMT+05:00

PSX Closing Bell: Riding High, Ending Low



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg