Download the End-July Industry Monitor infographic below.
Credit Benchmark have released the end-month industry update for July, based on a partial subset of the contributed credit risk estimates from 40+ global financial institutions.
In the update, you will find:
- Opinion Indicator: Assesses the month over month observation-level net downgrades or upgrades.
- Ratio: Ratio of Deteriorations and Improvements calculated as Deteriorations / Improvements
- Distribution Changes: The increase or decrease in the percentage of entities in the given rating category
- IG to HY Migration: The absolute and relative movement from investment-grade to high-yield
Compared to the figures seen in the July Mid-Month Industry Monitor, the July End-Month Industry Monitor shows:
- The bias towards deterioration flagged by the opinion indicator ratio has increased slightly in Consumer Services (up from 4.6:1 to 5.3:1)
- Travel & Leisure remains a heavily impacted industry with a 12.4:1 deteriorating/improving ratio, up from 8.6:1
- Telecommunications is the only industry showing a positive ratio of deteriorations to improvements based on the opinion indicator
- The percentage of Oil & Gas Fallen Angels (Investment Grade entities migrating to High-Yield) increased from 1.6% to 4.0%
- US Oil & Gas entities migrated from investment grade to high-yield at a rate of 7.4% in the end-month Monitor vs. lower migration rate of 3.7% in the mid-month Monitor
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.
