Rating Outlooks have turned Negative for many non-bank financial institution (NBFI) sub-sectors compared to the start of 2020, reflecting negative pressures from the operating environment on asset quality, earnings and support-driven ratings, says Fitch Ratings in its "2021 Outlook: Global Non-Bank Financial Institutions Compendium".

We expect asset-quality risks and residual value deterioration to crystallize in 2021, as government support measures to economies and borrowers reduce. Decreased trading volumes relative to 2020 and investment performance and valuation pressures may weigh on certain firms' earnings. Ratings remain sensitive to successive virus waves that dampen any recovery, as well as regulatory approaches to unwinding stimulus and addressing vulnerable customers.

For more details see the Global NBFI Compendium, now on the 2021 Outlooks dedicated page of the Fitch Ratings website at www.fitchratings.com, or by clicking here.