(The following statement was released by the rating agency)
NEW YORK, March 17 (Fitch) Europe's fragile emergence from
with soft US growth and slowing emerging market activity
remained key factors
affecting global corporate credit quality in 2013, according to
a new Fitch
Ratings report. However, macro challenges were balanced by good
fundamentals and a calmer operating environment for financial
The global corporate default rate remained low in 2013 at 0.51%.
market default rate was 1.12% and the developed market rate,
0.26%. In addition,
the vast majority of ratings, 81.7%, remained the same in 2013.
(9.8%) marginally topped upgrades (8.5%).
Rating activity was similar to 2012 across both industrials and
the exception that the share of financial institutions
downgraded (8.4%) was
down from 12.4% in 2012 and at the lowest level since 2007.
Overall, the margin
of downgrades to upgrades was 1.3 to 1 across industrials and 1
to 1 across
financial institutions in 2013.
Issuer downgrades trailed upgrades for the fourth consecutive
emerging markets (0.9 to 1), but by a smaller margin than in
2012 (0.7 to 1).
Among advanced economies, downgrades continued to outpace
upgrades by 1.3 to 1
in 2013, a modest improvement from 1.6 to 1 in 2012.
By year-end 2013, 'BBB' rated issuers remained more abundant
across the mix of
global financial and industrial entities - 36% and 43% of
Fitch's new study provides data and analysis on the performance
global corporate finance ratings in 2013 and over the long term,
period 1990 to 2013. The report provides summary statistics on
the year's key
rating transition and default trends.
The study is titled 'Fitch Ratings Global Corporate Finance 2013
Default Study' and is available on Fitch's web site under Credit
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
+1 212 908-9123
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549,
Additional information is available on www.fitchratings.com.
The above article originally appeared as a post on the Fitch
Wire credit market
commentary page. The original article, which may include
hyperlinks to companies
and current ratings, can be accessed at www.fitchratings.com.
expressed are those of Fitch Ratings.
Applicable Criteria and Related Research: Fitch Ratings Global
2013 Transition and Default Study
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