Fitch: Coronavirus will accelerate key long-term shifts for credit

Amid the coronavirus (COVID-19) pandemic, the global rating agency Fitch came out with the analysis suggesting a change in the long-term credit drivers.

Key quotes

The coronavirus pandemic and resulting economic shock will accelerate changes in key long-term credit drivers, including the expansion of the government's role in economies, declining capital investment, new personal consumption patterns, migration to online activities, and trade relationships.

Accelerated long-term disruptions could significantly affect credit across a wide range of sectors, especially as ample market liquidity and favorable financial conditions will not indefinitely forestall solvency problems.

Market implications

Considering the market’s current attention on the virus updates, news for the long-term seems less interesting for traders. As a result, S&P 500 Futures extend the previous day's Wall Street gains to print 3,055, up 0.25% on a day, as a quote by the press time of early Tuesday morning in Asia.