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High Rates Have Upturned How Moody's Looks at Credit Risk, Chief Credit Officer Says
Moody's recent commentary emphasizes a reevaluation of credit risk, highlighting that rising interest costs make leverage increasingly critical. Atsi Sheth, the chief credit officer, suggests that higher rates are altering the landscape for creditworthiness assessments. This shift is particularly significant now as central banks continue tightening monetary policy, potentially affecting borrowing costs and corporate financial stability. As markets react to these changes, players in the FX space should consider how these dynamics might influence currency trends, particularly for those with higher leverage.