Moody's says the ECB has added flexibility to its QE program, a credit positive

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Monday, 14 September 2015

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Moody's in their latest credit outlook report

" ... the ECB will make further changes to the QE program as needed to adjust to macroeconomic developments, and in particular, the risk of a prolonged period of low inflation
"The increased flexibility is credit positive for euro area issuers. Very low inflation is credit negative since it hampers the ability of issuers to deleverage via an increase in revenues and assets'

Moody's referring to the European Central Bank decision on September 3 to increases issue share limit from 33% compared to 25% prior, this allows the ECB to buy more of a single-issue of bonds.