NEW YORK--(BUSINESS WIRE)--Link to Fitch Ratings' Report: Fitch Global Corporate Ratings Analytics Quarterly
Global corporate finance ratings downgrade to upgrade rate in third quarter-2014 (3Q'14) was a moderate 1.1 to 1, according to Fitch Ratings in a new report.
The share of issuers downgraded declined to 2% from the prior quarter's 2.2%, while upgrades also retreated to 1.8% from 2.4%. The relative calm during 3Q'14 propelled 2014's cumulative downgrade rate to 7% and upgrades to 6.1% for a stability rate of 86.9%.
Fitch's global corporate issuer default rate remained low and below average at 0.39% through September, compared with a 2013 rate of 0.51%. All issuers defaulting through 3Q'14 carried a speculative-grade rating at the beginning of the year, resulting in a Fitch global speculative-grade default rate of 1.23%.
Developed and emerging market rating activity trends have parted ways over the course of 2014. Emerging market downgrades topped upgrades by a margin of 2 to 1 through 3Q'14, while the rate fell to a mildly positive 0.8 to 1 across developed market issuers.
The mix of global corporate Negative and Positive Outlooks held steady at the end of September, 12% and 6%, respectively. The share of financial institution Negative Outlooks (15%) remained higher than industrials at 9%. Industrials assigned a Positive Outlook (6%) compared with financial institutions (7%).
For a full review of global rating analytics by region and industry through 3Q'14, see Fitch's report, 'Fitch Global Corporate Ratings Analytics Quarterly,' published today and available at 'www.fitchratings.com' under Credit Market Research or by clicking on the above link.
Additional information is available at 'www.fitchratings.com'.