European corporate defaults show signs of levelling off; risks remain tilted to downside Two years of rating pressure on European corporates shows signs of easing but credit risk remains tilted to the downside for the rest of 2025 given geopolitical uncertainty, economic headwinds and challenging financing conditions for the smallest firms. Scope Ratings forecasts that corporate defaults will ease in the second half of 2025 and through 2026, supported by the region’s gradual return to more robust GDP growth after two years of stagnation.