March Credit Update: Downgrades And Upgrades Balanced; Coverage Includes Saudi Aramco

We have published credit data for March, with 12 contributor banks now providing crowd-sourced credit views (CBCs*) on more than 8,200 separate legal entities.

Sovereign coverage now includes Government of Brunei Darussalam.
Other additions include Saudi Arabian Oil Company, Banca Popolare di Bari, China ZheShang Bank, Cheniere Energy, Mueller Industries, Canada Goose, Parques Reunidos Servicios Centrales, Baker & McKenzie LLP, and The Bankers Investment Trust PLC.

Over the month, 251 obligors improved their credit standing by at least one notch, and 276 deteriorated. 80 moved more than 1 notch. Compared with the previous month, downgrades and upgrades are now more in balance, with a small decrease on notch changes of more than 1: the February data showed that 156 improved, 282 deteriorated, and 96 moved by more than 1 notch, out of approximately 8,100 obligors.

Upgrades dominate downgrades in 6 out of 9 reported industries. The most significant improvement of credit quality occurred in Utilities with 13 upgrades and 7 downgrades, Health Care with 7 upgrades and 2 downgrades and Basic Materials with 19 upgrades and 11 downgrades. Industries with deteriorating credit ratings include Telecommunications with 5 downgrades and 1 upgrades and in Industrials with 44 downgrades and 28 upgrades.


*CBC = Credit Benchmark Consensus; a 21-category scale which is explicitly linked to probability of default estimates sourced from major banks. A CBC of bbb+ is broadly comparable with BBB+ from S&P and Fitch or Baa1 from Moody’s.

Disclaimer: Credit Benchmark does not solicit any action based upon this report, which is not to be construed as an invitation to buy or sell any security or financial instrument. This report is not intended to provide personal investment advice and it does not take into account the investment objectives, financial situation and the particular needs of a particular person who may read this report.

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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.