Financials credit quality showed a bias towards net credit deterioration this month, with a negative ratio of 1.4 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 1.8 improvements to each deterioration. Utilities and Consumer Services were the only other industries that also showed a bias towards credit improvement, with improving to deteriorating ratios of 1.6 and 1.1 respectively. Technology stands out with a negative ratio of 2 deteriorations to each improvement.
Oil & Gas credit strength was also reflected at the sector level, with US and UK firms both showing high positive ratios. Conversely, Canada Oil & Gas stands out with a negative ratio of 1.4 deteriorations to each improvement. Travel & Leisure companies continue to perform well, with 2.3 improvements to every deterioration.
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.