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End-August Industry Monitor

Posted by on Sep, 1 2020.

Download the End-August Industry Monitor infographic below.

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

In the update, you will find:

  • Opinion Indicator: Assesses the month over month observation-level net downgrades or upgrades.
  • Ratio: Ratio of Deteriorations and Improvements calculated as Deteriorations / Improvements
  • Distribution Changes: The increase or decrease in the percentage of entities in the given rating category
  • IG to HY Migration: The absolute and relative movement from investment-grade to high-yield

Compared to the figures seen in the August Mid-Month Industry Monitor, the August End-Month Industry Monitor shows:

  • The bias towards deterioration remained the same from mid-month to end-of-month for Corporates (3:1) and worsened slightly for Financials (2.2:1 this update, up from 1.9:1 in the last update).
  • There was little significant change in the deteriorating/improving ratios among the industries from mid-month to end-of-month. The largest worsening ratio changes are seen in Oil & Gas (5.7:1 this update compared to 4.8:1 last update) and Technology (2.4:1 this update compared to 1.7:1 last update).
  • Though all the industries are skewed towards deterioration this month, some industries showed milder ratios of deterioration compared to the last update. These include Utilities (2.4:1 this update compared to 3.7:1 last update) and Telecommunications (2.1:1 this update compared to 2.8:1 last update).
  • Within the sectors, Canadian Oil & Gas stands out with the heaviest deteriorating ratio, at 50:1. UK Oil & Gas and US Oil & Gas continue to show high levels of deterioration also (10:1 and 5:1 respectively).
  • Outside of Oil & Gas, Travel & Leisure remains the sector with the largest deteriorating/improving ratio, at 5.8:1 (up from 5.3:1 in the last update). Travel & Leisure also shows the highest percentage of Fallen Angels this update (Investment Grade entities migrating to High-Yield), at 4.4% of total entities.
  • Among the industries, Basic Materials show the greatest percentage of Fallen Angels (2.9%).

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.

For full details, please download the End-August 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.


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