{"id":71069,"date":"2026-08-28T16:38:12","date_gmt":"2026-08-28T20:38:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/european-sovereigns-show-resilience-as-fed-updates-bank-data\/71069\/"},"modified":"2026-08-28T16:38:12","modified_gmt":"2026-08-28T20:38:12","slug":"european-sovereigns-show-resilience-as-fed-updates-bank-data","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/european-sovereigns-show-resilience-as-fed-updates-bank-data\/71069\/","title":{"rendered":"European Sovereigns Show Resilience as Fed Updates Bank Data"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>S&amp;P Global Ratings<\/strong> affirmed Portugal\u2019s <strong>&#39;A+\/A-1&#39;<\/strong> credit ratings with a <strong>positive outlook<\/strong>, citing resilient economic growth and a projected debt-to-GDP decline to <strong>75% by 2029<\/strong>.<\/li>\n<li><strong>Morningstar DBRS<\/strong> confirmed the Netherlands at its top-tier <strong>AAA<\/strong> rating with a <strong>stable trend<\/strong>, supported by a robust institutional framework and resilient <strong>1.4% GDP growth<\/strong> projected for 2026.<\/li>\n<li>The <strong>Federal Reserve<\/strong> released its weekly <strong>H.8 report<\/strong>, showing that total bank credit for all U.S. commercial banks reached approximately <strong>$17.5 trillion<\/strong> as of mid-August 2026.<\/li>\n<li>Portugal&#39;s fiscal discipline remains a highlight, with the country expected to maintain a downward debt trajectory despite a fragmented political landscape and rising defense expenditures.<\/li>\n<\/ul>\n<h2>Portugal Maintains Positive Trajectory Under S&amp;P Review<\/h2>\n<p>S&amp;P Global Ratings (<a href=\"\/stock\/SPGI\">SPGI<\/a>) affirmed its unsolicited <strong>&#39;A+\/A-1&#39;<\/strong> long- and short-term sovereign credit ratings on <strong>Portugal<\/strong> this Friday. The agency maintained a <strong>positive outlook<\/strong>, reflecting the country&#39;s ability to sustain economic growth and wealth levels despite global volatility. Analysts noted that Portugal\u2019s net general government debt is expected to fall to <strong>75% of GDP by 2029<\/strong>, down from its pandemic-era peak of <strong>122%<\/strong>.<\/p>\n<p>The rating agency highlighted that <strong>prudent fiscal management<\/strong> will be crucial as the nation absorbs pressures from demographic aging and increased defense requirements. While S&amp;P projects a temporary dip into budget deficits in <strong>2026 and 2027<\/strong> due to accelerated capital expenditure under the <strong>Next Generation EU (NGEU)<\/strong> program, the underlying economic fundamentals remain strong. <em>Resilient tourism and a competitive cost structure<\/em> continue to support the nation&#39;s external position.<\/p>\n<h2>Netherlands Retains Gold-Standard AAA Rating<\/h2>\n<p><strong>Morningstar DBRS<\/strong> confirmed the <strong>Kingdom of the Netherlands<\/strong> at <strong>AAA<\/strong> with a <strong>stable trend<\/strong>, reinforcing the country&#39;s status as one of the world&#39;s most creditworthy sovereigns. The agency cited the Netherlands&#39; <strong>advanced, wealthy, and productive economy<\/strong> as the primary driver for the confirmation. Real GDP growth is projected to remain steady at <strong>1.4% in 2026<\/strong>, underpinned by robust domestic demand and a strong labor market.<\/p>\n<p>Despite the positive rating, the agency noted that fiscal deficits are expected to widen slightly to <strong>2.5% of GDP in 2026<\/strong> and <strong>2.9% in 2027<\/strong>. This shift follows the formation of a new government in early 2026 and a subsequent increase in <strong>public investment and defense spending<\/strong>. <em>Elevated household debt<\/em> remains a long-term structural challenge, though Morningstar DBRS considers the risks contained due to the country&#39;s strong institutional framework.<\/p>\n<h2>Federal Reserve Updates Commercial Bank Data<\/h2>\n<p>The <strong>Federal Reserve<\/strong> published its latest <strong>H.8 statistical release<\/strong>, providing a comprehensive look at the <strong>Assets and Liabilities of Commercial Banks in the United States<\/strong>. The data, which is break-adjusted and seasonally adjusted, indicates that <strong>bank credit<\/strong> has maintained a steady growth rate of approximately <strong>5.6%<\/strong> year-over-year. <strong>Securities in bank credit<\/strong> saw a significant uptick, rising at an annual rate of <strong>9.7%<\/strong> in the most recent monthly data.<\/p>\n<p>Commercial and industrial (C&amp;I) loans showed a slight contraction of <strong>-2.4%<\/strong> in the latest period, while <strong>real estate loans<\/strong> remained stable with a <strong>2.1%<\/strong> growth rate. This weekly data is a critical indicator for market participants tracking the health of the U.S. financial system and the impact of current monetary policy on lending behavior. The release remains a primary tool for assessing the balance sheets of both <strong>domestically chartered<\/strong> and <strong>foreign-related<\/strong> banks operating within the U.S.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways S&amp;P Global Ratings affirmed Portugal\u2019s &#39;A+\/A-1&#39; credit ratings with a positive outlook, citing resilient economic growth and a 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