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.
The balance of upgrades and downgrades has been very even across Global Corporates and Global Financials this month, with Financials showing a neutral ratio of 1:1 improvements to deteriorations, while Corporates were ever so slightly positively biased, with a ratio of 1.1:1.
Amongst the industries, the strongest instance of net improvement was seen in Basic Materials, with a ratio of 1.4:1. Most of the other industries hovered close to neutral, with the exception of Utilities which bucked the trend with a negative ratio of 1:1.6 improvements to deteriorations.
In the sectors, Canada Corporates were the worst performers, with a negative ratio of 1:2.9 improvements to deteriorations. This movement was largely driven by Canada Oil & Gas firms, which showed a similar negative ratio of 1:3.1. US Corporates fared slightly better, though still negative, at 1:1.6, while the US Oil & Gas subset showed a ratio of 1:1.5. UK Corporates emerged the winner this month with a modest positive ratio of 1.1:1 improvements to deteriorations.
Travel & Leisure firms continue to reap the benefits of a resurgence of personal and business travel bookings, showing the highest positive ratio this month at 2:1 improvements to deteriorations.
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.