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End-September Industry Monitor

Posted by on Oct, 8 2020.

Download the End-September Industry Monitor infographic below.

Credit Benchmark have released the end-month industry update for September, 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 September Mid-Month Industry Monitor, the September End-Month Industry Monitor shows:

  • The bias towards deterioration seen in the mid-month update worsened slightly for Corporates (2.3:1 deteriorating/improving, up from 1.9:1 in the last update) and more so for Financials (3.2:1 this update, up from 2:1 in the last update).
  • There was little significant change in the deteriorating/improving ratios among the industries from mid-month to end-of-month. Of the industries, Telecommunications remained the worst performing industry, with a 4:1 deteriorating/improving ratio.
  • All of the industries barring Healthcare (0.8:1 deteriorating/improving ratio) are dominated by deterioration this month, though the ratio for Utilities and Oil & Gas lessened in severity since the last update (Utilities show a 1.7:1 deteriorating/improving ratio, down from 2.4:1, while Oil & Gas has dropped slightly from 2.8:1 in the last update to 2.7:1 this update).
  • Within the sectors, Travel & Leisure again tops the list of worst performers, with a 5.6:1 ratio (up from 3.8:1 in the last update). Canadian Oil & Gas continues to show high levels of deterioration at 4:1 deteriorating improving.
  • The sector with the highest rate of Fallen Angels (companies migrating from Investment Grade to High Yield) is General Retailers, with 3.5% of all firms crossing the boundary. Amongst the industries, Consumer Services shows the most Fallen Angels, with 2% of companies crossing over.

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-September 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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