Download the latest Industry Monitor below.
Credit Benchmark have released the end-month industry update for end-February, based on the final and complete set of the contributed credit risk estimates from 40+ global financial institutions.
Financials credit quality showed a bias towards net credit deterioration this month, with a negative ratio of 1.1 deteriorations to each improvement. Corporates showed a neutral ratio of 1:1 improvements to deteriorations.
Amongst the industries, Telecommunications stands out with a negative ratio of 1.7 deteriorations to each improvement. Utilities, Technology and Health Care also showed a bias toward credit deterioration. Oil & Gas and Industrials were the only industries that showed a bias towards credit improvement, both with improving to deteriorating ratios of 1.1:1. Basic Materials, Consumer Goods and Consumer Services came in at neutral.
At the sector level, Canada Oil & Gas stands out with a negative ratio of two deteriorations to each improvement. Travel & Leisure firms continue to reap the benefits of a resurgence of personal and business travel bookings, with a positive ratio of 1.6 improvements to each deterioration. However, General Retailers showed a bias towards credit deterioration, with an improving to deteriorating ratio of 1:1.4.
In the update, you will find:
- Credit Consensus Distribution Changes: The net increase or decrease of entities in the given rating category since the last update.
- Credit Transition: Assesses the month-over-month observation-level net downgrades or upgrades, shown as a percentage of the total number of entities within each category.
- Ratio: Ratio of Improvements and Deteriorations in each category since last update, calculated as Improvements : Deteriorations.
- IG to HY Migration: The number of companies which have migrated from investment-grade to high-yield since the last update (known as Fallen Angels).
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.
