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.
CorporatesĀ 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.
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.
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 & GasĀ 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.
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.