Core Points - The U.S. government has shut down due to a failure to reach an agreement on a temporary spending bill, primarily over health care tax credits [2] - Lawmakers are engaging in blame games, with President Trump criticizing Democrats for their negotiation stance [3] - The shutdown is expected to delay the release of key economic data, including nonfarm payrolls, which could influence the Federal Reserve's decisions [4] Group 1: Economic Impact - The shutdown may not significantly impact the real economy in the long term, as historical shutdowns have shown a tendency for conditions to revert post-shutdown [5] - However, this shutdown could lead to strategic changes from both political parties, with Republicans and Democrats aiming to leverage the situation for legislative gains [6] Group 2: Market Reactions - Prolonged shutdowns could raise concerns about the credit quality of U.S. debt, potentially affecting Treasury prices and increasing yields [7] - Moody's has previously downgraded the U.S. credit rating and indicated that further downgrades could occur if institutional effectiveness declines [7]

Core Viewpoint - CK Hutchison Holdings is in the process of a controversial ports divestment and has secured an upper medium-grade rating for its planned bond issuance, which may serve as a catalyst for a potential rating upgrade [1][3]. Group 1: Bond Issuance - Fitch Ratings assigned an A- rating to CK Hutchison's planned bond issuance, while S&P Global Ratings rated it an A [1]. - The size and pricing of the notes have not yet been determined, and the proceeds are expected to be used for refinancing and general corporate purposes [2]. Group 2: Company Profile and Financial Management - Fitch analysts noted that the rating reflects CK Hutchison's strong business profile, geographical diversification, prudent financial management, and stable cash flow from its high-quality port, retail, infrastructure, and telecommunications businesses [3]. - The firm's credit profile is anticipated to improve if the port asset sale is completed, although further details on the post-transaction capital structure are needed for a final assessment [4]. Group 3: Ports Divestment - The planned debt sale follows comments from CK Hutchison's co-managing director regarding a reasonable chance of reaching an agreement on the company's ports assets, which include two facilities on the Panama Canal [5]. - In March, CK Hutchison announced a US$23 billion sale of 43 overseas ports to a BlackRock-led consortium, which faced criticism due to geopolitical concerns [6]. - After the deal's deadline lapsed, CK Hutchison indicated it would invite a mainland Chinese firm to the consortium to address Beijing's concerns, with reports suggesting Cosco Shipping as a potential partner [6].

Core Viewpoint - AFL's long-term credit rating has been downgraded from AA- (negative outlook) to A+ (stable outlook) by Fitch Ratings, following a similar downgrade of the French government's rating [1][3]. Rating Summary - AFL's long-term rating is now A+ with a stable outlook, while its short-term rating remains unchanged at F1+ with a stable outlook [3]. - The downgrade is a direct result of Fitch Ratings' methodology linking the sovereign rating to AFL due to its business model focused on financing French local authorities [3]. Financial Situation - The downgrade does not indicate a deterioration in AFL's financial situation, which remains solid [4]. - AFL maintains a robust business model, high liquidity, and prudent financial policies [8]. Regulatory Impacts - Debt issued by AFL is classified as high-quality liquid assets (HQLA1) under the LCR Delegated Regulation, provided that loans to eligible RGLA exceed 90% of total outstanding loans [5]. - As of June 30, 2025, AFL's debt securities have a risk weighting of 30% for the calculation of risk-weighted assets under the standard approach [9]. Company Overview - AFL is a bank created by and for French local authorities, aiming to empower local governance and provide cost-efficient resources with transparency [11]. - The institution focuses on maximizing public spending rather than profit, supporting local authorities in addressing social, economic, and environmental challenges [11].

Core Viewpoint - The international credit ratings agency, S&P Global Ratings, has reaffirmed the Group's credit rating at 'BBB+' with a stable outlook [1] Group Summary - The Group is identified as "Ignitis grupė" [1] - The reaffirmation of the credit rating follows an annual review conducted by S&P Global Ratings [1]

Core Idea - S&P Global Ratings affirmed Oma Savings Bank Plc's credit ratings at BBB/A-2 but changed the outlook to negative due to an increase in nonperforming loans [1][2] Company Overview - Oma Savings Bank Plc is a solvent and profitable Finnish bank with approximately 600 professionals serving over 200,000 private and corporate customers through 48 branch offices and digital channels [3] - The bank focuses on retail banking operations and offers a wide range of banking services, including credit, investment, and loan insurance products, as well as mortgage banking [3] Customer Service Philosophy - The company aims to provide personal service and maintain a local presence for its customers through both digital and traditional channels [4] - OmaSp emphasizes premium customer experience through personal service and easy accessibility, with a commitment to customer-oriented development of operations and services [4] - A significant portion of the personnel owns shares in OmaSp, indicating employee investment in the company's success [4]

Group 1 - Moody's Investors Service upgraded LHV Group's long-term issuer and senior unsecured ratings to Baa2 with a positive outlook, indicating a strong financial position and capitalization [1] - LHV Group's proposed subordinated notes received a Ba1 rating from Moody's, reflecting expectations of further strengthening of solidity [1] - The long-term deposit rating for LHV Group carries a positive outlook, with a long-term counterparty risk assessment of A3(cr) and a short-term counterparty risk rating of Prime-2 [3] Group 2 - LHV Group is the largest domestic financial group and capital provider in Estonia, with key subsidiaries including LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited [2] - As of the end of July, LHV Pank serves 476,000 customers, LHV's pension funds have 109,000 active customers, and LHV Kindlustus protects 177,000 customers [2] - LHV Bank Limited holds a banking license in the UK and provides services to international financial technology companies and loans to small and medium-sized enterprises [2]

Core Viewpoint - New Fortress Energy's stock has significantly declined due to disqualification from a key government auction in Puerto Rico, alongside disappointing Q1 results and worsening credit issues [1][2][5][6] Group 1: Stock Performance - Shares of New Fortress Energy fell by 14.5% as of market close, coinciding with broader market declines in the S&P 500 and Nasdaq Composite [1] - The stock's decline is attributed to negative news regarding the company's exclusion from a government auction [1][2] Group 2: Auction Disqualification - New Fortress Energy has been disqualified from a Puerto Rican government auction aimed at securing temporary power generation, specifically for an 800-megawatt contract [2] - The company has reached out to Puerto Rico's Governor requesting reconsideration of the disqualification [3] Group 3: Financial Performance - The company recently announced Q1 results that did not meet Wall Street's expectations, contributing to negative market sentiment [5] - New Fortress Energy sold its Jamaican LNG import terminal in Montego Bay for $1 billion, which, while providing immediate cash, poses a risk to future revenue streams [5] Group 4: Credit Rating and Leverage - The company's credit rating has deteriorated further, exacerbating its ongoing financial challenges as it is heavily leveraged [6] - There are multiple issues facing New Fortress Energy, leading to a lack of a compelling turnaround case in the near future [6]

Group 1: U.S. Credit Ratings - In 2011, S&P Global Ratings downgraded the U.S. long-term credit outlook from AAA to AA+ due to budgetary issues, with Fitch downgrading U.S. credit again in 2023 and Moody's considering a similar move [1] - The 2024 fiscal deficit has ballooned to over $1.8 trillion, exacerbating debt and fiscal issues [1] Group 2: Microsoft - Microsoft holds AAA and Aaa ratings from S&P and Moody's, respectively, and has seen its stock fall about 12% this year, outperforming peers in the "Magnificent Seven" [4][6] - The company has a diverse business model across various tech sectors, including cloud, video games, and AI, and was an early investor in OpenAI [4] - Microsoft has a strong balance sheet with over $71.5 billion in cash and equivalents, approximately $40 billion in long-term debt, and equity exceeding $302 billion, resulting in a low debt-to-equity ratio [6] Group 3: Johnson & Johnson - Johnson & Johnson is the only other U.S. company with top credit ratings and recently announced an acquisition of Intra-Cellular Therapies for $14.6 billion, which may impact its credit rating due to increased debt [7] - The stock has performed well, up nearly 9% this year, and the company raised its full-year revenue outlook to $91.4 billion from $89.4 billion [8] - Johnson & Johnson's CFO indicated that the guidance includes a $400 million impact from tariffs, which could affect stock performance if trade tensions with China persist [9] - At the end of 2024, Johnson & Johnson had over $24 billion in cash, about $30.6 billion in long-term debt, and over $71 billion in total equity, maintaining a strong balance sheet despite the recent acquisition [10]