Corporates are balanced between improvement and deterioration this month. Financials are narrowly tipped towards net credit deterioration, with a ratio of 1:1.1.
Amongst the Industries, Telecommunications are the worst performer this month, with a ratio of 1.6 deteriorations to every improvement. Basic Materials, Health Care and Utilities follow close behind each with a 1:1.3 improvements to deteriorations ratio. Oil & Gas firms have come out on top with a positive ratio of 1.5 improvements to each deterioration.
The sectors show more variance in credit quality. Oil & Gas strength is also reflected at the sector level, with Canada Oil & Gas firms coming out strong with a 7.5:1 improvement to deterioration ratio. US and UK Oil & Gas firms also performed well with positive ratios of 2.5:1 and 1.6:1 respectively. Travel & Leisure firms also stand out with a bias towards credit improvement, with an improving to deteriorating ratio of 1.7:1. US Corporates continue to perform badly, with an improving to deteriorating ratio of 1:1.3. General Retailers are narrowly tipped towards net credit deterioration, with a ratio of 1:1.1.
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.