October 2022 Industry Monitor

Download the latest Industry Monitor below.

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

Upgrades and downgrades have again stayed relatively balanced this month, though the modest bias towards improvement continues. Financials showed slightly superior credit traction than Corporates, with a ratio of 1.5:1 improvements to deteriorations. Corporates came in at a ratio of 1.3:1.

Of the industries, Oil & Gas maintains dominance as a top performer, at a ratio of 2.7:1 improvements to deteriorations. Next strongest were Basic Materials, at 1.9:1, followed by Consumer Services at 1.6:1. The rest of the industries were close to neutral, with Utilities coming in last with a negative ratio of 1:1.3 improvements to deteriorations.

Of the sectors, Oil & Gas unsurprisingly were the strongest – Canada Oil & Gas led the pack at 16:1 improvements to deteriorations, followed by US firms at 4.8:1 and UK at 1.9:1. Travel & Leisure companies also performed well, with 2.5 improvements to every deterioration. There were no instances of net deterioration, but Construction & Material firms were weakest overall, at 1.1:1.

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.

For full details, please download the latest Industry Monitor infographic here:

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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.