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October Credit Update: Consensus Downgrades Outweigh Upgrades

Posted by on Nov, 5 2019.

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Credit Benchmark has published the latest monthly credit consensus data (from September 2019) based on contributions from 40+ financial institutions, covering 50,000 separate legal entities.

The monthly upgrades and downgrades overview is now based on data adjusted for changes in contributor mix.

Monthly consensus upgrades and downgrades:

  • 357 obligors improved their credit standing by at least one notch.
  • 335 obligors deteriorated.
  • 61 moved more than one notch.
  • The frequency of upgrades has slightly increased.

Last month showed improvements across 321 obligors and deterioration across 345, with 57 moving by more than one notch.

Industries:

  • Upgrades dominate downgrades in just one out of the ten reported industries and six out of ten have more downgrades.
  • Utilities show an improvement in credit quality with 22 upgrades and 12 downgrades.
  • The industries showing deteriorations include:
    • Basic Materials with seven upgrades and 24 downgrades.
    • Consumer Goods with nine upgrades and 32 downgrades.
    • Technology with six upgrades and 13 downgrades.

Note: Monthly upgrade / downgrade movement is based on 26,000 individual Consensus PDs.

To learn more about consensus ratings and analytics from Credit Benchmark, email [email protected]

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.


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