August 28, 2014 / 8:32 PM / 3 years ago

Fitch: Balanced Global Corporate Rating Activity at Mid-Year

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Fitch Global Corporate Rating Activity— First-Half 2014 here NEW YORK, August 28 (Fitch) 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. Contact: Charlotte Needham Senior Director +1-212-908-0794 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Mariarosa Verde Managing Director +1-212-908-0791 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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