Outlook stable on 74% of bank ratings says Fitch ratings

London (Capital Markets in Africa):- Fitch Ratings indicated that it upgraded 10 banks globally in the first quarter of 2015, with 90% in emerging markets; while it downgraded 22 banks worldwide, with 64% in emerging economies. It indicated that there were 70 ‘negative’ outlooks on the ratings of emerging market banks in the first quarter of 2015, unchanged from the fourth quarter of 2014 and up from 57 in the third quarter and 59 in the second quarter of 2014.

In parallel, the number of ‘positive’ outlooks totaled 12 in the first quarter of 2015 compared to 14 in the fourth quarter of 2014, 12 in the third quarter and 13 in the second quarter of last year. Also, the number of ‘stable’ outlooks increased to 255 in the first quarter of 2015 from 253 in the preceding quarter, but decreased from 275 in the third quarter and 277 in the second quarter of last year.

Overall, 73.9% of the banks’ outlooks in emerging markets are ‘stable’, 20.3% are ‘negative’ and 3.5% are ‘positive’. In parallel, 91.5% of outlooks in Emerging Asia are ‘stable’, 6.8% are ‘negative’ and 1.7% are ‘positive’; while 86.7% of outlooks in the Middle East & Africa are ‘stable’ and 11.4% are ‘negative’. Also, 76.8% of
outlooks in Emerging Americas are ‘stable’, 13% are ‘positive’ and 10.1% are ‘negative’; while 50.9% of outlooks in Emerging Europe are ‘stable’, 42% are ‘negative’ and 1.8% are ‘positive’.

Further, Fitch has 1.2% of bank ratings in emerging markets on ‘positive watch’, 0.9% on ‘negative watch’ and 0.3% on ‘evolving watch’.