Default, Transition, and Recovery: 2008 Annual Australia and New Zealand Corporate Default Study and Rating Transitions Apr 09
- ID: 2091167
- April 2009
- Region: Australia, New Zealand
- Standard & Poors
In 2008, the Australia and New Zealand issuer pool suffered its highest downgrade-to-upgrade ratio for five years. At 2.57x, it was similar to the global pool's 2.55x. That said, the issuer pool recorded only a single default in calendar-year 2008, the same number as in 2007 and 2006, and this is explained by the small size of the issuer pool contributing to a rating transition level that is more volatile than seen with the global pool. Nonetheless, the premise that lower ratings correspond to shorter time to default continues to hold. Ratings correlation with default risk levels across different time horizons continues to be supported by Gini methodology findings. The ratings momentum of the Standard & Poor's Australia and New...
Companies mentioned in this report are: Australia (Commonwealth of) (Unsolicited Ratings),New Zealand
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