August 2023 Industry Monitor

Download the latest Industry Monitor below.

Credit Benchmark have released the end-month industry update for end-July, based on the final and complete set of the contributed credit risk estimates from 40+ global financial institutions.

Both Financials and Corporates credit quality show a bias towards net credit deterioration this month, with negative ratios of 1.1 and 1.4 deteriorations to each improvement respectively.

Industry Level:

Oil & Gas is the only industry showing a bias towards improvement, with a positive ratio of 1.1 improvements to each deterioration. Basic Materials stands out with a negative ratio of 2.3 deteriorations to each improvement, followed by Utilities with an improving to deteriorating ratio of 1:1.7. 

Sector Level:

Oil & Gas strength is also reflected at the sector level, with US and Canada firms showing positive ratios. Travel & Leisure companies continue to perform well, with 1.9 improvements to every deterioration. Construction & Materials stand out with a bias towards credit deterioration, with an improving to deteriorating ratio of 1:1.4.

In the update, you will find:

  • Credit Consensus Distribution Changes: The net increase or decrease of entities in the given rating category since the last update.
  • Credit Transition: Assesses the month-over-month observation-level net downgrades or upgrades, shown as a percentage of the total number of entities within each category.
  • Ratio: Ratio of Improvements and Deteriorations in each category since last update, calculated as Improvements : Deteriorations.
  • IG to HY Migration: The number of companies which have migrated from investment-grade to high-yield since the last update (known as Fallen Angels).

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.

Credit Benchmark's latest industry update is based on complete credit risk estimates from over 40 global financial institutions.

For full details, please download the latest Industry Monitor infographic here:

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    Credit Benchmark brings together internal credit risk views from over 40 leading global financial institutions. The contributions are anonymized, aggregated, and published in the form of consensus ratings and aggregate analytics to provide an independent, real-world perspective of credit risk. Risk and investment professionals at banks, insurance companies, asset managers and other financial firms use the data for insights into the unrated, monitoring and alerting within their portfolios, benchmarking, assessing and analyzing trends, and fulfilling regulatory requirements and capital.