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Stock impact report

Global banks, fund managers sheltered from conflict [Investment Executive - News]

Morningstar, Inc. (MORN) 
With little direct exposure to the region, global banks and asset managers don't face material impacts from the growing conflict in the Middle East, but will be affected indirectly through macroeconomic channels, says Morningstar DBRS Inc. In a report published Tuesday, the rating agency said global banks don't have any direct exposures to Iran, given that it has been under severe economic sanctions — and, even their exposures to the broader Middle East region remain limited, and immaterial relative to the banks' earnings and balance sheets. “As a result, we do not anticipate any near-term credit rating pressures on our global bank credit ratings, despite certain global banks having modest operations in key urban centers in the region,” the report noted. However, if the conflict lasts for longer than expected, or escalates significantly, global banks could face higher loan loss provisions, and slower-than-expected global economic growth that eventually leads to weaker credit fu Show less Read more
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