Credit Benchmark have released the December Credit Consensus Indicators (CCIs). The CCI is an index of forward-looking credit opinions for US, UK and EU Industrials based on the consensus views of over 20,000 credit analysts at 40+ of the world’s leading financial institutions.
Drawn from more than 950,000 contributed credit observations, the CCI tracks the total number of upgrades and downgrades made each month by credit analysts to chart the long-term trend in analyst sentiment for industrials. A monthly CCI score of 50 indicates neutral credit quality, with an equal number of upgrades and downgrades made over the course of a month. Scores above 50 indicate that credit quality is improving. Scores below 50 indicate that credit quality is deteriorating.
EU Industrial firms continue their run of positive credit movement, with a 15th month of improvement. UK Industrial firms are struggling to remain in positive territory, with a return to net deterioration this month. US Industrial firms hang on to mild positivity with a fourth consecutive instance of a positive CCI score.
UK Industrials: Return To Net Deterioration
UK Industrial firms are struggling to remain in positive territory, with a return to net deterioration this month.
The UK Industrials CCI score is 49.6 this month, the first instance of a negative score since April 2022, and the third negative score in the last 12 months.
Further train strikes have been announced by rail staff, raising fears of severe travel disruption over the festive period, as the transport system is struck by widescale industrial action.
.
EU Industrials: Modest Improvement Continues
EU Industrial firms have registered another positive CCI for this month, which is the fifteenth consecutive instance of a positive score.
Whilst the trend was dipping close to neutral, the EU Industrials CCI score is 52.4 this month, a fourth large positive CCI score in a row.
The European Union is more determined than ever to transition from expensive imported fossil fuels to competitive, clean and home-grown renewables, to secure its clean energy industrial base.
.
US Industrials: Hanging On
US Industrial firms hang on to mild positivity with a fourth consecutive instance of a positive CCI score.
The US Industrials CCI score this month is 50.7, a slight improvement from last month’s CCI of 50.2.
US Industrial companies across the sectors have bounced back from the pandemic-driven recession. Now the digital revolution is brewing in the industrials sector.
.
To download the full CCI tear sheets for UK, EU, and US Industrials, please enter your details below:
In the current low yield environment, many Sovereign bonds issued by different countries are priced at similar levels. However, this Read more
Credit Benchmark is a market-led response to three of the most critical issues facing credit risk professionals: 1) The need to Read more
This paper examines the use cases for Credit Benchmark’s Consensus Probabilities of Default (Consensus PDs), in the context of more Read more
The Basel Committee on Banking Supervision recently published wide-reaching proposals for reducing variation in Credit Risk Weighted Assets, with a Read more
