The highlights are:
- Sanctions Exposure increased significantly in Q4 as the US, EU, and UK added 275 Chinese entities to major sanctions and red-flag lists—the highest quarterly number ever recorded. The primary drivers were concerns over Chinese entities developing advanced chips to support China’s military modernization (51%) and aiding Russia’s war efforts (27%).
- Fundamental Risk Scores shifted modestly. A total of 761 issuers saw score changes in Q4 but only 38 issuers changed by more than 0.5 points. Most changes were driven by new data on dual-use technology development, strategic agreements with the military, and government grants.
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