The #EU (AAA/stable) has set increasingly ambitious climate targets in recent years, but it will miss them without tougher climate policies and ramped-up investment – at a regional and national level – to accelerate emissions cuts. @dbrhampi

#Spain general government deficit will fall this year and next on short-term cyclical factors, but public finances remain vulnerable to sluggish growth, higher interest payments and welfare spending without a tighter fiscal framework. @dbrhampi

European bank profitability is no longer a major problem: Contrary to the market view that European banks continue to be insufficiently profitable, the sector’s bottom line is now reaching an adequate level. Read the full report by Sam Theodore:

For the 17th year, Scope has given out prizes for outstanding performance in the areas of liquid and alternative investments. The best large fund provider is J.P. Morgan Asset Management; Lupus alpha wins the smaller house award.

Greece’s economic recovery and the European Central Bank’s increased support are underpinning the country’s BB+ credit ratings despite high inflation. Better-than-anticipated fiscal dynamics are also credit positive.

Without a parliamentary majority to push through reform, the French government will likely miss targets for reducing public debt and lowering the budget deficit given extra near-term fiscal stimulus and higher longer-term energy and defence spending.

European airlines face an unrelentingly hot summer of rising staff costs, fuel prices and pent-up demand in which the natural response of raising ticket prices remains constrained by industry-wide operational challenges.

The ECB rate decision marks an acceleration of balance-sheet repricing for European banks and should be broadly positive after 10 years of falling and negative rates. But higher rates with lower lending volumes will not end banks’ profitability issues.

Scope upgrades the Republic of Croatia's credit ratings to BBB+; Outlooks revised to Stable. Euro area accession from 1 January 2023 drives the upgrade. Credit challenges are high public debt, modest potential growth and external vulnerabilities.

The methodology is now final following a call-for-comments period and will apply to all issuer and debt ratings of non-financial corporates.

Germany, urgently needing to wean itself off Russian gas but with no near-term alternative in sufficient volumes, is making progress towards a partial stopgap of significant but limited government support for industry and letting markets do their work.

Political uncertainty is increasingly clouding the UK’s fiscal outlook. Without economic reforms including tax increases to pay for rising ageing-related costs and offset falling fuel-tax income, public debt risks drifting on to an unsustainable path.

Tax revenue of the Länder showed strong growth in the first five months of 2022, but a recent slowdown highlights downside risks for the rest of the year, as Germany’s economic outlook is clouded by repercussions of Russia’s war in Ukraine.

Integrated oil and gas companies would normally be dusting off ambitious expansion plans given the bullish outlook for prices and margins, but the war in Ukraine and regulatory uncertainty is keeping investment in check.

Cyprus is on course for a sustained period of robust growth and fiscal consolidation despite the difficult economic environment in Europe, with growth to average around 2.7% over 2023-26, while banking sector resilience has improved.

Credito Emiliano Holding S.p.A. set pricing on its EUR 200m 10.25-year social Tier 2 at 7.625%. The notes are callable at 5.25 years. Scope rates Credito Emiliano S.p.A. on a subscription basis.

Scope Ratings has been named Service Provider of the Year by Structured Credit Investor (SCI), a leading news and data provider focused on securitisation and structured finance.

Inadequate corporate data remains the bugbear in improving disclosure for investors on greenhouse-gas emissions and other sustainability factors which EU regulatory initiatives are making only partial headway in addressing.

Scope Ratings has received a mandate from the @EU_Commission on to rate EU debt instruments.

The issuer rating reflects positive industry dynamics, strong market positions in key segments and markets, strong profitability and low financial leverage.