Download the End-August Industry Monitor infographic below.
Credit Benchmark have released the end-month industry update for August, based on the final and complete set 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 August Mid-Month Industry Monitor, the August End-Month Industry Monitor shows:
- The bias towards deterioration remained the same from mid-month to end-of-month for Corporates (3:1) and worsened slightly for Financials (2.2:1 this update, up from 1.9:1 in the last update).
- There was little significant change in the deteriorating/improving ratios among the industries from mid-month to end-of-month. The largest worsening ratio changes are seen in Oil & Gas (5.7:1 this update compared to 4.8:1 last update) and Technology (2.4:1 this update compared to 1.7:1 last update).
- Though all the industries are skewed towards deterioration this month, some industries showed milder ratios of deterioration compared to the last update. These include Utilities (2.4:1 this update compared to 3.7:1 last update) and Telecommunications (2.1:1 this update compared to 2.8:1 last update).
- Within the sectors, Canadian Oil & Gas stands out with the heaviest deteriorating ratio, at 50:1. UK Oil & Gas and US Oil & Gas continue to show high levels of deterioration also (10:1 and 5:1 respectively).
- Outside of Oil & Gas, Travel & Leisure remains the sector with the largest deteriorating/improving ratio, at 5.8:1 (up from 5.3:1 in the last update). Travel & Leisure also shows the highest percentage of Fallen Angels this update (Investment Grade entities migrating to High-Yield), at 4.4% of total entities.
- Among the industries, Basic Materials show the greatest percentage of Fallen Angels (2.9%).
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.
