June Credit Update: Consensus Corporate Downgrades Outweigh Upgrades


Credit Benchmark has published the latest monthly credit consensus data (from May 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:

  • 356 obligors improved their credit standing by at least one notch.
  • 367 obligors deteriorated.
  • 57 moved more than one notch.
  • The frequency of upgrades and downgrades has increased.

Last month showed improvements across 261 obligors and deterioration across 297, with 66 moving by more than one notch.

Industries:

  • Upgrades dominate downgrades in two out of ten reported industries and five out of ten have more downgrades.
  • The industries showing an improvement in credit quality are:
    • Basic Materials with 23 upgrades and 16 downgrades.
    • Technology with six upgrades and four downgrades.
  • The industries showing deteriorations include:
    • Consumer Services with 22 upgrades and 29 downgrades.
    • Oil & Gas with 20 upgrades and 32 downgrades.
    • Utilities with three upgrades and 17 downgrades.

Note: Monthly upgrade / downgrade movement is based on 28,000 individual Consensus PDs.

To learn more about consensus ratings and analytics from Credit Benchmark, email info@creditbenchmark.com.

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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