Credit Benchmark have released the end-month credit industry monitor for end-March, based on the final and complete set of the contributed credit risk estimates from ~40 global financial institutions.
Credit Benchmark covers 42,300 non-financial Corporate firms, 93% of which are not rated by a credit rating agency. This month, Corporates leant towards net credit improvement, with a modest positive ratio of 1.2 improvements to every deterioration. Financial firms (of which we cover 10,940, 82% of which are not publicly rated) showed credit neutrality, with a 1:1 improvements to deteriorations ratio.
There were few instances of strong credit movement in either direction amongst the Industries. Utilities (covering 1,702 firms, 74% unrated) and Industrials (20,346 firms, 97% unrated) had the strongest performance, both with positive ratios of 1.4:1. The group showing the strongest bias towards credit deterioration was Telecommunications (483 firms, 77% unrated) with an improvements to deteriorations ratio of 1:1.8. Technology (1,579 firms, 85% unrated) and Basic Materials (2,997 firms, 91% unrated) followed some way behind, both with negative ratios of 1:1.2.
At the sector level, Oil & Gas firms came out on top, with Canada Oil & Gas (174 firms, 78% unrated) showing a positive ratio of 3:1 improvements to deteriorations, and UK Oil & Gas (269 firms, 96% unrated) following behind with a ratio of 1.8:1. US Oil & Gas (465 firms, 67% unrated) was also positive but with a near neutral ratio of 1.1:1. Conversely, Canada Corporates (1,935 firms, 91% unrated) as a whole performed the worst, with a negative improvements to deteriorations ratio of 1:1.5. General Retailers (3,095 firms, 95% unrated) were neutral this month at 1:1.
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.
