Airports are benefiting from a broad resumption of domestic, and to a lesser extent international travel. However, the rebound into positive territory over 2021 has been uneven regionally. As both segments look to 2022, they remain susceptible to renewed COVID-related restrictions and cost pressures that could crimp consumer demand.
Credit impact: Generally positive for insurers selling blocks, but negative for policyholders under new ownership
Recovering economic activity supports demand for base metals, iron ore, steel and coal in 2022. Prices will still exceed historical levels, but not reach new highs.
The level of impact on natural systems and location of operations determine the exposure to deforestation risks in the Amazon and Cerrado
For 2022, we expect moderating pricing pressures. Building materials will be best positioned to reap the benefits of rising prices.
The pandemic has led to a significant increase in government debt in both advanced economies and emerging markets. Although many will stabilize their debt in the near term, some sovereigns will struggle to rebuild fiscal buffers given structural deficits or weak growth potential.
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Nearly half of the largest global corporate emitters of greenhouse gases are not well-prepared for a rapid carbon transition scenario. However, certain industries are better positioned than others. Decarbonization efforts in the auto manufacturing and power generation sectors are improving their alignment to Paris Agreement goals.
The food & supermarket sectors must step up efforts to tackle the global nutrition and health crises and contribute to the Sustainable Development Goals (SDGs) of zero hunger and good health and well-being
Recovery in credit quality underway; corporate rating actions reveal a thoughtful and measured approach to credit
Moody’s analysis indicates that G20 financial institutions have nearly $22 trillion of exposure to carbon-intensive sectors1. On balance sheet bank loans account for 60% of this, and asset managers’ equity holdings for another 30%. Large rated insurers’ invested assets, which are weighted towards cash and government securities, account for the remainder.
