(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: Global Quarterly Bank Rating
LONDON, March 03 (Fitch) Fitch Ratings says European bank rating
continue to remain more negative than those for banks in other
parts of the
world. Globally, negative Outlooks and Watches on bank ratings
markets still outweigh those in emerging markets, with 18.3% of
banks on Negative Outlook/Watch compared with 14.8% of emerging
the gap narrowed in 4Q13.
Just over a quarter of Issuer Default Ratings (IDRs) assigned to
in developed European countries were on Negative Outlook/Watch
compared with just over a fifth of banks operating in emerging
countries. During 4Q13, European banks accounted for 83% of bank
globally and 88% of Viability Rating (VRs) downgrades.
Globally, there were 34 actions on banks' IDRs in 4Q13, 18
downgrades and 16
upgrades. Of these, 14 were triggered by sovereign rating
actions, all in
emerging markets. The downgrade of Ukraine's sovereign rating
affected nine bank
ratings. Only eight IDR actions occurred in developed markets,
Netherlands, the UK and the US. VR upgrades outweighed
downgrades during 4Q13.
Of the 42 VR actions in the quarter, there were 25 upgrades and
Over 70% of VR rating actions occurred in Europe, where there
was an equal
number of downgrade and upgrades (15.)
Globally, about 80% of bank IDRs are on Stable Outlook. Banks in
Asia/Australasia and Middle East/Africa continue to have the
highest levels of
Stable Outlooks. Bank IDRs continue to cluster at the 'BBB'
level, with 32% of
global bank ratings in this category, split roughly equally
and emerging markets.
Globally, support-driven ratings make up 39% of IDRs assigned to
banks by Fitch.
The proportion of support-driven ratings is higher in emerging
markets (46%) and
less prominent in developed markets (31%). Fitch expects the
of state support for banks globally to affect some
notably in the developed markets where resolution legislation is
Fitch expects to communicate likely paths for its Support Rating
Floors in 1Q14.
Further details of quarterly global bank ratings are in the
'Global Bank Rating Trends 4Q13', available at
www.fitchratings.com or by
clicking on the link above.
+44 20 3530 1464
Fitch Ratings Limited
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London E14 5GN
Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153,
Additional information is available on www.fitchratings.com
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