Link to Fitch Ratings' Report: Fitch Global Corporate Rating Activity First-Half 2014
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753021
The share of global corporate finance issuers downgraded in the second quarter of 2014 (2.2%) was modestly lower than the margin upgraded (2.4%) according to Fitch Ratings. Spain's sovereign upgrade lifted several Spanish banks (and international subsidiaries), with the overall European corporate finance downgrade-to-upgrade ratio equalized at 1 to 1 for the first time since late 2012.
Financial institution rating activity was largely positive in the second quarter. Downgrades (1.7%) trailed upgrades (3.4%), reversing course from a restrained negative rating drift in the prior quarter (2.6% vs. 2%). Industrial downgrades surpassed upgrades globally by a modest margin of 1.6 to 1, mirroring first-quarter results.
Industrial downgrades topped upgrades across both emerging (2.6% versus 1.2%) and advanced economies (2.6% versus 1.8%), respectively.
Emerging market financial institution downgrades edged lower quarter to quarter (3.3% versus 4.8%), while upgrades climbed to 3.5% from 1.3%.
The developed market financial institutions downgrade to upgrade ratio, 0.3 to 1, improved from the prior quarter's 0.7 to 1 margin.
Fitch recorded an issuer-based default rate of 0.35% in the first half, in line with 0.29% recorded a year prior.
At the end of June, those global corporate finance issuers assigned a Negative Outlook edged lower from March, to 12% from 13%. Positive Outlook assignments improved to 6% from 5%.
For a full review of global rating activity by region and industry through 1H'14, see the report titled 'Fitch Global Corporate Rating Activity First-Half 2014,' dated Aug. 28, 2014, available on Fitch's website at www.fitchratings.com under Credit Market Research, or by clicking on the link above.
Additional information is available at 'www.fitchratings.com'.
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