Nordic Credit Rating (NCR) said today that it is actively assessing the immediate and possible long-term effects of Russia's invasion of Ukraine on the credit quality of the issuers it rates. In an initial assessment, NCR said there is no immediate ratings impact, but added that the effects of the conflict will remain under close scrutiny.
"The conflict is complex and its future course is unpredictable. However, we aim to assess the likely impact on our existing ratings and the credit quality of the entities we rate on the basis of available information and the actions taken to date," said NCR Chief Rating Officer Sean Cotten.
NCR's initial view is that the likely impact on financial markets and the issuers it rates does not yet warrant a broad reassessment of rating levels or outlooks. Instead, the agency is considering each rated issuer individually and assessing their direct and indirect exposures to the conflict zone. NCR is also assessing any likely changes in their financing prospects, and their respective exposure to conflict-driven changes in commodity prices and/or capital market disruptions.
NCR said it expects to follow this initial assessment with deeper analysis of specific sectors as the conflict evolves. The agency said it continues to monitor issuers as part of its regular review processes but will also signal any changes in its assessment of their credit quality that arise as a result of the war.
This commentary does not constitute a rating action.