Credit Benchmark have released the end-month industry update for end-March, based on the final and complete set of the contributed credit risk estimates from 40+ global financial institutions.
Both Financials and Corporates credit quality showed a bias towards net credit improvement this month, with a positive ratio of 1.1 improvements to each deterioration.
Amongst the industries, the top performer was once again Oil & Gas, with a positive ratio of 1.6 improvements to each deterioration. Basic Materials and Consumer Services were the next strongest, with positive ratios of 1.3:1 and 1.2:1 respectively. Health Care and Telecommunications both stand out with a negative ratio of 1.5 deteriorations to each improvement. Utilities, Technology and Consumer Goods also showed a bias toward credit deterioration.
At the sector level, US Oil & Gas stands out with a positive ratio of 3.4 improvements to each deterioration. Conversely, UK Oil & Gas stands out with a negative ratio of 2.2 deteriorations to each improvement. Travel & Leisure firms continue to reap the benefits of a resurgence of personal and business travel bookings, with a positive ratio of 1.5 improvements to each deterioration. Canada Corporates showed a bias towards credit deterioration, with an improving to deteriorating ratio of 1:1.7.
In the update, you will find:
Credit Benchmark will continue to provide regular reports on these migration rates. If you have any questions about the contents of this update, please get in touch.
