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 and Corporates are very close to being balanced between improvement and deterioration this month. Financials are very narrowly tipped towards net credit deterioration, with a ratio of 1:1.1. Corporates are slightly tipped in the opposite direction, with an improving to deteriorating ratio of 1.1:1.
Amongst the Industries, Technology firms are the worst performer this month, with a ratio of 1.5 deteriorations to every improvement. Heath Care follows close behind at 1:1.4 improvements to deteriorations. Most of the Industries are close to balance this month, though Consumer Goods 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, with Canada Oil & Gas firms coming out strong with a 3:1 improvement to deterioration ratio. UK Oil & Gas firms also performed well with a positive ratio of 1.9:1. Travel and Leisure firms are not far behind at 1.6:1. Of those that fared negatively, US Corporates are the worst affected, with an improving to deteriorating ratio of 1:1.3. This trend was reflected across North America, with Canada Corporates and US Oil & Gas both 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.