GCC, Turkey non-financial corporates' 2020 outlook negative - Moody's | ZAWYA MENA Edition

GCC, Turkey non-financial corporates' 2020 outlook negative - Moody's | ZAWYA MENA Edition:

The 2020 outlook for non-financial corporates in the Gulf Cooperation Council (GCC), Turkey and South Africa is negative, Moody's Investors Service said.

The outlook for GCC non-financial corporates has changed to negative from stable, while it remained unchanged for Turkish and South African non-financial corporates.

According to Moody’s, GCC corporates were assigned a negative outlook due to : low non-oil GDP growth and heightened geopolitical tensions that weigh on investor sentiment and consumer confidence; volatile oil prices that limit governments’ ability to fund growth initiatives.

Factors that could change Moody’s rating on GCC corporates to stable are: supportive oil prices resulting in narrowing fiscal deficits; stronger commitment towards public spending; supportive stance towards government-related issuers. (GRIs)