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Fitch: U.S. Public Finance Upgrades Exceeded Downgrades in 2Q'14; Largely Due to Upgrade of NY Debt

August 4, 2014



NEW YORK--(BUSINESS WIRE)-- Fitch Ratings notes that during the second quarter of 2014 (2Q'14) and for the first time since 3Q'09, U.S. public finance rating upgrades outnumbered downgrades. The trend reversed largely due to the upgrade of the state of New York's general obligation bonds and related debt on June 20, 2014.

Fitch downgraded 36 credits, which represented approximately 3.8% of all rating actions and $62.1 billion in par value. In 1Q'14, Fitch downgraded 37 credits. Fitch upgraded 47 credits, which represented 4.9% of all rating actions and $69.9 billion in par value. In 1Q'14, Fitch upgraded 21 credits. The upgrades to New York's debt comprised 17 of the second quarter upgrades.

The number of downgrades was less than upgrades by a ratio of 0.8:1. Downgrades exceeded upgrades by 1.8:1 in the prior quarter. The downgrade to upgrade ratio by par value decreased dramatically to 0.9:1, from 25:1 in the prior quarter, when the par amount of downgrades was unusually large.

The number of Negative Rating Outlooks (208) continued to exceed the number of Positive Rating Outlooks (66), resulting in a 3.2:1 ratio at the end of the second quarter. A majority of the rating actions (87%) during the second quarter were affirmations, with no change in Rating Outlook or Rating Watch status. Furthermore, 92% of ratings had a Stable Rating Outlook at the end of the second quarter.

The full report 'U.S. Public Finance Rating Actions for Second Quarter 2014' summarizes these rating actions by sector and can be found at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: U.S. Public Finance Rating Actions Second-Quarter 2014

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752154

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

Sarah Repucci, +1-212-908-0726

Senior Director

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Vincent Barberio, +1-212-908-0505

Managing Director

or

Media Relations

Elizabeth Fogerty, New York, +1-212-908-0526

elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings


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