Key Takeaways
- Of the rating actions to date in 2022, 60% have been positive, though this trend is losing momentum.
- For the first time in 62 weeks (since December 2020), last week downgrades (14) outpaced upgrades (six) due to the increase in negative rating actions related to the Russia-Ukraine conflict.
- Russian banks have had the highest number of negative rating actions--both downgrades and negative outlook revisions/CreditWatch placements--so far this year.
Chart 1
So far this year, rating actions have been largely positive, with upgrades and positive outlook/CreditWatch revisions constituting 60% of total rating actions. However, there are signs that this positive momentum could be slowing: The percentage of upgrades has been falling, while the percentages of downgrades and negative outlook/CreditWatch revisions have been rising (see Charts 1). In addition, negative rating actions surpassed positive ones this past week for the first time since December 2020. This was due to the rating actions related to the Russia-Ukraine conflict, energy prices, or both (see "Ratings Actions Waypoint: The Russia-Ukraine Conflict," March 10, 2022).
Chart 2
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Related Research
- Ratings Actions Waypoint: The Russia-Ukraine Conflict, March 10, 2022
- U.S. Public Finance Credit Quality Improved In 2021, March 8, 2022
- Default, Transition, and Recovery: Emerging Market Defaults Are Higher Than In 2021, March 7, 2022
- Default, Transition, and Recovery: Environmental, Social, And Governance Factors Influence 17% Of Weakest Links, March 7, 2022
- Economic Research: What Higher Energy Prices Mean For Emerging Markets, March 4, 2022
- Ratings Weekly Digest: Mar 2, 2022, March 3, 2022
- Default, Transition, and Recovery: Rising Risks Could Undermine Europe's Slowing Default Trend, Feb. 28, 2022
- Ratings Weekly Digest: Feb 25, 2022, Feb. 25, 2022
- Risky Credits: Clouds On The Horizon For North American 'CCC' Rated Companies, Feb. 24, 2022
This report does not constitute a rating action.
Credit Markets Research: | Nicole Serino, New York + 1 (212) 438 1396; nicole.serino@spglobal.com |
Patrick Drury Byrne, Dublin (00353) 1 568 0605; patrick.drurybyrne@spglobal.com | |
Research Contributor: | Yogesh Kumar, CRISIL Global Analytical Center, an S&P affiliate, Mumbai |
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