Global Structured Finance Coronavirus Performance Report (Asset Performance Hinges on Response to Unwinding of Debt Relief Programs: 4Q20)

Forbearance and Arrears Key Metrics: The coronavirus pandemic has caused severe disruption across the global economy. Governments globally have enacted emergency financial support programs to mitigate hardship for consumers and businesses. Many lenders have offered debt relief measures to borrowers experiencing difficulties across a range of lending products, as well as other tactics, including restricting enforcement procedures. In this quarterly report, we examine the role of forbearance measures and arrears to assess the impact of the current health crisis. Updated Rating Outlooks along with the Global housing and mortgage outlook report will be released in December 2020. Debt Relief Mechanisms Vary Across Sectors: The adoption of forbearance measures differs significantly across countries and sectors. The highest proportion of debt relief measures stands with countries where initiatives have been led by regulators (see Appendix 1 and 2 for details). Fitch expects debt relief measures to slow as more stringent conditions to access the programs are put in place. However, given the persisting health crisis, some countries have already extended the programs well into 2021.

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