News Column

Fitch Ratings Releases Global Short-Term 2013 Transition and Default Update

July 31, 2014



NEW YORK--(BUSINESS WIRE)-- Fitch Ratings today published an update of the rating migration and default experience of Fitch-rated global corporate and structured finance short-term ratings through 2013.

Benign default conditions extended to short-term debt instruments in 2013. Fitch recorded an average 12 month default rate of 0.21% across the agency's global short-term ratings - in line with a similarly low default rate of 0.51% recorded across Fitch's universe of global corporate long-term ratings.

The share of corporate finance short-term ratings downgraded in 2013, 6.2%, was down from the prior year's 7.5%, but again exceeded the year's modest upgrade rate of 2.3%.

Fitch's short-term ratings distribution has shifted from a 60% concentration in the top rating categories -- 'F1+' and 'F1' -- in 2000 to 32% by year-end 2013. Pressure on the rating mix has come from three developments - broad based credit quality deterioration in the aftermath of the financial crisis, industrials strategically moving down the rating scale, and the growing presence of lower rated emerging market issuers in the mix.

For the fifth consecutive year, there were no short-term structured finance defaults in 2013. In addition, rating stability remained high, with the vast majority of ratings either remaining unchanged or paying in full for the year.

The study is titled 'Fitch Ratings Global Short-Term 2013 Transition and Default Update' and is available on Fitch's web site under Credit Market Research.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research: Fitch Ratings Global Short-Term 2013 Transition and Default Update

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752566

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. 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.



Fitch Ratings

Charlotte Needham, +1 212-908-0794

Senior Director

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Stephanie Mah, +1 212-908-0884

Senior Director

or

Media Relations:

Brian Bertsch, +1 212-908-0549

brian.bertsch@fitchratings.com

Source: Fitch Ratings


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