Credit Benchmark have released the end-month industry update for end-November, based on the final and complete set of the contributed credit risk estimates from ~40 global financial institutions.
CorporatesĀ credit quality show a slight bias towards net credit improvement this month, with a ratio of 1.2:1. Financials are nearly balanced between improvement and deterioration this month, with a ratio of 1:1.1.
Amongst the Industries, Telecommunications remain the worst performer this month, with a ratio of 2 deteriorations to every improvement. Utilities and Technology follow close behind with improving to deteriorating ratios of 1:1.4 and 1:1.3 respectively. Oil & Gas firms remain on top with a positive ratio of 1.7 improvements to each deterioration.
Oil & GasĀ strength is also reflected at the sector level, with Canada Oil & Gas firms coming out strong with a 2.3:1 improvement to deterioration ratio. UK and US Oil & Gas firms also performed well with positive ratios of 1.6:1 and 1.5:1 respectively. Travel & Leisure firms also stand out with a bias towards credit improvement, with an improving to deteriorating ratio of 1.6:1. Construction & Materials follow close behind with an improving to deteriorating ratio of 1.5:1.
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.