U.S. Policies: Mixed Medium- to Longer-Term Credit Rating Outcomes, but Stable Credit Ratings for Now

This is a piece of analytical research on the changes coming with President Trump's administration, noting the executive actions and announcements in the first day of the new administration. It provides a holistic overview with views and opinions on new and anticipated U.S. policies across Sovereigns, Financial Institutions, and Corporate Finance, including Middle Market Companies.

-- U.S. policies will not have an immediate effect on global sovereign credit ratings but could exacerbate existing challenges for some countries.
-- Overall, we view the benefits of likely higher earnings being offset by the potential for heightened risk profiles resulting in a neutral impact to our U.S. financial institutions' credit ratings.
-- From a credit perspective, the actions taken by and planned by President Trump for the energy sector are expected to be generally positive for U.S.-based oil and gas producers, potentially somewhat negative for Canadian oil and gas companies, and mixed for U.S. refining companies.
-- No impacts expected on the credit profile of our existing renewable U.S. power projects, however, the immediate changes to U.S. energy policy are a significant setback for the U.S. wind industry going forward and could alter the growth trajectory of the U.S. renewable industry overall in the near- to medium-term.
-- Higher than expected inflation and interest rates, should they emerge, will likely have a net credit-negative impact on many middle market borrowers.