Credit Benchmark have released the end-month industry update for end-February, based on the final and complete set of the contributed credit risk estimates from 40+ global financial institutions.
Financials credit quality showed a bias towards net credit deterioration this month, with a negative ratio of 1.1 deteriorations to each improvement. Corporates showed a neutral ratio of 1:1 improvements to deteriorations.
Amongst the industries, Telecommunications stands out with a negative ratio of 1.7 deteriorations to each improvement. Utilities, Technology and Health Care also showed a bias toward credit deterioration. Oil & Gas and Industrials were the only industries that showed a bias towards credit improvement, both with improving to deteriorating ratios of 1.1:1. Basic Materials, Consumer Goods and Consumer Services came in at neutral.
At the sector level, Canada Oil & Gas stands out with a negative ratio of two deteriorations to each improvement. Travel & Leisure firms continue to reap the benefits of a resurgence of personal and business travel bookings, with a positive ratio of 1.6 improvements to each deterioration. However, General Retailers showed a bias towards credit deterioration, with an improving to deteriorating ratio of 1:1.4.
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.