August 10, 2017 / 4:00 PM / a month ago

Fitch Releases Corporate Finance Transition and Default Study

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Global Corporate Finance 2016 Transition and Default Study here NEW YORK, August 10 (Fitch) The global corporate finance (financial and nonfinancial issuers) rating activity remained aligned with year-earlier activity with downgrades topping upgrades 1.5 to 1 -- mimicking the year-earlier ratio. Issuers affected by downgrades (11.1%) declined modestly from 12.2% in 2015. Similarly, issuers affected by upgrades in 2016 decreased to 7.5% from 8.1% a year earlier, according to the new Fitch Ratings study. Nonfinancial entities affected by downgrades (13.3%) and upgrades (8.3%) in 2016, edged slightly higher than 2015 activity. Financial institution downgrades in 2016 declined to 8.6% from 14.1% in 2015, while upgraded issuers also moved lower year-over-year (YOY) to 6.6% from 9.2%. The ratio of developed markets downgrades to upgrades was roughly unchanged YOY at 1.1 to 1. Emerging market (EM) activity recorded a 2.1 to 1 margin of downgrades to upgrades in 2016, reflecting in part an increase in EM sovereign downgrades to 16 from 11 a year earlier. Fitch global corporate finance issuer defaults totaled 28 in 2016 -- in line with the 31 defaults recorded in 2015. Overall, Fitch's global corporate finance issuer-based annual default rate was 0.91% -- marginally below the 1.02% default rate recorded in 2015. This new study provides transition and default analysis on Fitch's corporate finance ratings in 2016 and over the long term period 1990-2016. The report provides summary statistics on the year's key corporate finance rating trends. The study is titled 'Global Corporate Finance 2016 Transition and Default Study' and is available on Fitch's web site at www.fitchratings.com or by clicking on the link. Contact: Charlotte Needham Senior Director +1-212-908-0794 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Peter Patrino Chief Criteria Officer +1-312-368-3266 peter.patrino@fitchratings.com Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com. Additional information is available on 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 WEB SITE AT 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. 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