Global financial institutions enjoyed positive credit rating actions, outnumbering negative moves, in the second quarter, Fitch Ratings reports.
The rating agency noted that 29% of its second-quarter rating actions in the financial sector were positive, compared with 14% that were negative. The balance of its reviews resulted in no change.
The Europe, Middle East and Africa (EMEA) region accounted for the largest number of positive ratings actions, representing 41% of the total, Fitch said.
Most of the positive revisions came for banks, following an update to Fitch’s bank rating criteria in early May — whereas changes to sovereign ratings were the primary source of negative rating activity, driving 69% of the negative moves.
By contrast, sovereign rating changes only accounted for 11% of the positive moves for global financials.
Fitch also noted that the balance of rating watches and outlooks shifted modestly in the second quarter — with the share of watches and outlooks that are positive slipping to 8%, down from 9% in the first quarter. Meanwhile, the share of negative outlooks and watches ticked up to 7% from 6%. The share of stable outlooks remained unchanged at 85%.