March 2024 Industry Monitor

Download the latest Industry Monitor below.

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

Credit Benchmark covers 40,572 non-financial Corporate firms, 93% of which are not rated by a credit rating agency. The credit trend for this group was close to balanced last month, with an improvements to deteriorations ratio of 1.1:1. Financial firms (of which we cover 10,642, 82% of which are not publicly rated), tipped in the opposite direction, with a very slight skew towards deterioration and a ratio of 1:1.1.

Industry Level Credit Movement:

Balance was seen throughout the different industries, with the majority of the categories registering neutral or near-neutral credit ratios of 1:1 or 1.1:1. Technology firms (covering 1,492 firms, 85% unrated) and Utilities (1,611 firms, 73% unrated) edged out slightly in front, both with a positive ratio of 1.2 improvements to every deterioration. Healthcare (1,406 firms, 89% unrated) was the worst performer, with a mildly negative ratio of 1:1.3 improvements to deteriorations, closely followed by Telecommunications (478 firms, 78% unrated), with a ratio of 1:1.2.

Sector Level Credit Movement:

There was slightly more pronounced movement at the sector-level, with Travel & Leisure (1,715 firms, 93% unrated) coming out on top with a positive ratio of 1.5:1 improvements to deteriorations. UK Corporates (8,486 firms, 97% unrated), and Construction & Materials (3,286 firms, 97% unrated) followed, with ratios of 1.3:1. Canadian firms fared less well, with Canada Oil & Gas (169 firms, 78% unrated) showing the strongest negative ratio of 1:2, and Canada Corporates (1,761 firms, 91% unrated) showing 1:1.5 improvements to deteriorations.

In the update, you will find:

  • Credit Consensus Distribution Changes: The net increase or decrease of entities in the given rating category since the last update.
  • Credit Transition: Assesses the month-over-month observation-level net downgrades or upgrades, shown as a percentage of the total number of entities within each category.
  • Ratio: Ratio of Improvements and Deteriorations in each category since last update, calculated as Improvements : Deteriorations.
  • IG to HY Migration: The number of companies which have migrated from investment-grade to high-yield since the last update (known as Fallen Angels).

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.

Industry credit risk monitor

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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.