Financials credit quality showed a bias towards net credit deterioration this month, with a negative ratio of 1.2 deteriorations to each improvement. Corporates showed a neutral ratio of 1:1 improvements to deteriorations.
Amongst the industries, the top performer was once again Oil & Gas, with a positive ratio of 1.5 improvements to each deterioration. Utilities, Industrials and Consumer Goods also showed a bias towards credit improvement. Telecommunications stands out with a negative ratio of 2.6 deteriorations to each improvement.
Oil & Gas credit strength was also reflected at the sector level, with US, Canada and UK firms showing positive ratios. Travel & Leisure companies continue to perform well, with 1.9 improvements to every deterioration. Canada Corporates showed a bias towards credit deterioration, with an improving to deteriorating ratio of 1:1.2.
In the update, you will find:
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.