August 21, 2012 / 2:22 PM / 5 years ago

TEXT-S&P reports on global uncertainty, North American credit

Aug 21 - In a report published Aug. 20, 2012, titled "North American Credit
Conditions Are Clouded By Heightened Global Uncertainty," Standard & Poor's
Ratings Services said it believes the chance of another recession in the U.S.
has risen, while the odds of a true double-dip downturn in the eurozone economy
remain high. 

"We do not believe the U.S. and European economies will improve substantially 
in the next year, even under our base-case economic scenarios. With the global 
economy weakening amid considerable downside risks, we anticipate more 
challenging credit conditions ahead," said Standard & Poor's senior managing 
director John Bilardello.

At the same time, the possible contagion from the European debt crisis, the 
potential so-called "fiscal cliff" (the collection of fiscal-tightening events 
set to occur at the end of this year and the beginning of 2013 without 
agreements to avert them), and the risk of a hard landing for China's economy 
have added greater uncertainty to U.S. economic prospects in upcoming months.

In Canada, the current mix of international and domestic macroeconomic 
conditions could bring about a rising level of unemployment and further 
constrain income growth for Canadian workers. These developments may 
potentially impair consumers' debt servicing capacity and amplify Canada's 
vulnerability to a housing market correction at some point in the future. 
However, our baseline assumption is that Canada's housing market is positioned 
for a soft landing.

The report is available to subscribers of RatingsDirect on the Global Credit 
Portal at If you are not a RatingsDirect 
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 
or sending an e-mail to Ratings 
information can also be found on Standard & Poor's public Web site by using 
the Ratings search box located in the left column at

Our Standards:The Thomson Reuters Trust Principles.
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