Download the latest Industry Monitor below.
Credit Benchmark have released the end-month industry update for end-November, based on the final and complete set of the contributed credit risk estimates from ~40 global financial institutions.
Corporates credit quality show a bias towards net credit improvement this month, with a ration of 1.5:1. Financials are nearly balanced between improvement and deterioration this month, with a ratio of 1:1.1.
Industry Level Credit Movement:
Amongst the Industries, Telecommunications remain the worst performer this month, with a ratio of 1.4 deteriorations to every improvement. Utilities follow close behind with a 1:1.2 improvements to deteriorations ratio. All other industries on the monitor are biased towards net credit improvement this month. Oil & Gas firms remain on top with a positive ratio of 2 improvements to each deterioration.
Sector Level Credit Movement:
US Corporates stand out as the only sector with a bias towards credit deterioration this month, with an improving to deteriorating ratio of 1:1.7. All other sectors on the monitor are biased towards net credit improvement this month. Oil & Gas strength is also reflected at the sector level, with UK Oil & Gas firms coming out strong with a 3.3:1 improvement to deterioration ratio. US and Canada Oil & Gas firms also performed well with positive ratios of 1.2:1 and 3:1 respectively. Travel & Leisure firms also stand out with a bias towards credit improvement, with an improving to deteriorating ratio of 1.9:1. Construction & Materials follow close behind with an improving to deteriorating ratio of 1.8:1.
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.
