Software sector disruption caused by artificial intelligence is unlikely to trigger a wave of credit rating downgrades despite market concerns,
- “Many investors draw comparisons to the pace of rating actions during the COVID-19 pandemic; however, the current environment differs from that period,” the rating agency said in a note published on Wednesday. “Today’s environment reflects structural technological evolution rather than an abrupt macroeconomic shock”
- Most issuers continue to perform in line with expectations and the credit impact of AI is likely to be gradual and issuer-specific
- However, S&P notes that refinancing risk and liability management remain ...