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TEXT-Fitch: US public finance downgrades down during Q3
December 10, 2012 / 4:43 PM / 5 years ago

TEXT-Fitch: US public finance downgrades down during Q3

Dec 10 - Fitch Ratings notes that during the third quarter of 2012 (3Q'12)
and for the 15th consecutive quarter, U.S. public finance rating downgrades
outnumbered upgrades. Both the number of upgrades and downgrades decreased from

Negative actions are expected to remain elevated, as Negative Rating Outlooks
exceeded Positive Rating Outlooks (3.6:1) in 3Q'12. However, a vast majority of
rating actions (81%) during the third quarter were affirmations, with no change
in Rating Outlook or Rating Watch status. Furthermore, 91% of ratings had a
Stable Rating Outlook at the end of the third quarter.

Downgrades still account for a small percentage of total public finance rating
actions. Fitch downgraded 54 credits, which represented approximately 5.4% of
all rating actions and $15.4 billion in par value. In 2Q'12, Fitch downgraded 58
credits. The number of downgrades for 2012 year to date is fewer than the number
of downgrades for the same period in 2011.

Fitch upgraded 22 credits in the third quarter, which represented 2.3% of all
rating actions and $8.6 billion in par value. In 2Q'12, Fitch upgraded 27
credits. The number of upgrades for the first three quarters of 2012 was also
lower than for the same period in 2011.

The full report 'U.S. Public Finance Rating Actions for Third Quarter 2012'
summarizes these rating actions by sector and can be found at

Additional information is available at ''.

Applicable Criteria and Related Research: U.S. Public Finance Rating Actions
Third-Quarter 2012

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