Credit prospects appear dimmer in 2023 as Europe grapples with a rapidly changing world order as war, energy transition, and supply chain vulnerabilities create a more volatile economic environment, notably with inflation soaring to multi-decade highs. Further escalation of the Russia-Ukraine war, energy supply shocks, stubborn inflation, and volatile and illiquid markets all present credit risks that, in various combinations, could trigger a deeper, more prolonged, recession than we currently anticipate.