Credit Benchmark have released the end-month industry update for end-August, based on the final and complete set of the contributed credit risk estimates from ~40 global financial institutions.
Financials are balanced between improvement and deterioration this month. Corporates are narrowly tipped towards net credit deterioration, with a ratio of 1:1.2.
Amongst the Industries, Health Care firms are the worst performer this month, with a ratio of 1.8 deteriorations to every improvement. Telecommunications follows close behind at 1:1.5 improvements to deteriorations. Oil & Gas firms have come out on top with a positive ratio of 1.4 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 2.2:1 improvement to deterioration ratio. UK and US Oil & Gas firms also performed well with positive ratios of 1.3:1 and 1.2:1 respectively. Travel & Leisure firms also stand out with a bias towards credit improvement, with an improving to deteriorating ratio of 1.5:1. Of those that fared negatively, US Corporates are still the worst affected, with an improving to deteriorating ratio of 1:1.5. This trend was reflected across North America, with Canada Corporates showing a ratio of 1:1.2.
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.
