European Stocks Rally on Chinese Growth and Mining Merger Speculation 
New Zealand Fast-Tracks Gold Mining as Industry Revival Gains Momentum 
Wall Street Slides as AI Stocks Tumble Following South Korea Tech Sell-Off 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Bank of America Posts Strong Q4 2024 Results, Shares Rise 
Singapore Inflation Stays Muted in May as Core CPI Misses Forecasts Ahead of MAS Review 
Australia Inflation Cools in May, But Core CPI Keeps RBA Rate Hike Risks Alive 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Gold Falls Below $4,000 as Strong Dollar and Fed Rate Hike Expectations Weigh on Prices 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
South Korea Stocks Tumble as AI-Fueled Rally Faces Profit-Taking Pressure 
French companies' bond issuance will remain steady during 2018, supported by low interest rates, accommodative monetary policy and the country's improving economic outlook, Moody's Investors Service said in a report today.
The report, "French non-financial corporates - Stable credit quality, solid markets point to clear skies for debt issuance", is available on www.moodys.com. Moody's subscribers can access this report via the link provided at the end of this press release. This report does not constitute a rating action.
"France's improving macroeconomic prospects, rising business confidence and better profit margins will support corporate investments and debt issuance during 2018," said Guillaume Leglise, a Moody's analyst and the report's author. "Low interest rates and accommodative monetary policies will also continue to support corporates debt issuance."
Moody's expects between EUR65 billion and EUR70 billion worth of bond issuance by French non-financial companies this year and between EUR70 billion and EUR75 billion in 2018.
With refinancing needs appearing to be modest for 2018-19, notably for large and repeat issuers, Moody's believes issuance volume will be more driven by investments and potential M&A activity.
French issuers will continue to have good access to capital markets as their credit quality is broadly stable, with an average rating of Ba1 as of October 2017, unchanged from the last two years.
The rating agency anticipates that large investment grade (IG) companies will continue to drive the market. More than 80% of bond issuance volumes this year were led by IG issuers, according to Dealogic data. Large and repeat issuers clearly benefitted from low interest rates and took the opportunity to issue longer-dated paper.
French high yield (HY) issuances grew in 2017 mainly supported by record leveraged loan issuances. First-time and single-B rated issuers are back and the issuance momentum is expected to continue on the back of strong investor demand and higher risk appetite for lower rated issuers.
Moody's does not anticipate major liquidity risks for French corporates next year. Overall, they have solid balance sheets and healthy liquidity which is sufficient to meet cash requirements over a 12-month period.
