International Banker: Are We on the Cusp of a Global Solvency Crisis?

Credit Benchmark CCI data on the credit quality of US, UK, and EU Industrial companies has been cited in the International Banker article “Are We on the Cusp of a Global Solvency Crisis?”

There are increasing signs that companies are starting to show some resilience as economic conditions gradually begin to improve. According to financial-data analytics firm Credit Benchmark—which polls the forward-looking credit opinions for the industrial companies of the United States, the United Kingdom and the European Union (EU) every month based on the consensus views of more than 30,000 credit analysts at 40 of the world’s leading financial institutions—data for November shows “yet another month of credit deterioration for UK, EU and US Industrial companies.” However, the analysis does acknowledge that each region “showed notable improvement in the severity of the trend.” According to November’s report, UK industrial companies “have entered a sixth consecutive month of net credit deterioration, but the severity has lessened, and the overall position is the best it has been since March—before COVID had begun to majorly impact the global economy.” EU industrials, meanwhile, “have not seen a month of net credit improvement since last December—but unlike their UK and US peers, deterioration has been milder and more consistent.” And US industrials “have seen the biggest improvement in their collective credit quality this month vs. their UK and EU peers.”

International Banker, January 11, 2021.

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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.