Credit Benchmark have released the end-month industry update for end-January, based on the final and complete set of the contributed credit risk estimates from ~40 global financial institutions.
Credit Benchmark covers 40,423 non-financial corporate firms, 93% of which are not rated by a credit rating agency. These Corporates showed improving credit quality last month, with an improvements to deteriorations ratio of 1.4:1. Financial firms (of which we cover 10,576, 82% of which are not publicly rated), showed a slight bias towards deterioration, with a ratio of 1:1.2.
At the industry-level, Industrial firms (covering 19,502 entities, 97% unrated) were the best performers last month, with a positive ratio of 1.6:1 improvements to deteriorations. Consumer Services (covering 6,376 entities, 93% unrated) was the next best cohort, showing a positive ratio of 1.3:1. Net deterioration amongst the industries was mostly mild, with Technology (1,470 entities, 85% unrated) and Telecommunications (456 entities, 77% unrated) each showing a negative ratio of 1:1.2 improvements to deteriorations. The worst performer of the group was Health Care (1,404 entities, 89% unrated), with a negative ratio of 1:1.7.
Of the sectors, Construction and Materials (3,290 entities, 97% unrated) and Travel & Leisure (1,691 entities, 93% unrated) came out on top with positive ratios of 1.6:1. Again, deterioration was mild, with UK Oil & Gas (262 entities, 96% unrated) and US Oil & Gas (471 entities, 67% unrated) at the bottom of the group with negative ratios of 1:1.5 improvements to deteriorations.
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.
