Fitch Ratings-New York-01 August 2017: The second quarter of 2017 marked the 13th consecutive quarter in which U.S. public finance upgrades outnumbered downgrades, according to a new Fitch Ratings report.
Affirmations accounted for 77% of total rating actions in 2Q17, an increase from 74% in 1Q17.
“There were 94 upgrades and 37 downgrades across all U.S. public finance sectors; in the prior quarter, there were 124 and 74, respectively,” said Jessalynn Moro, Managing Director of Fitch’s U.S. Public Finance group. “Upgrades were driven by the tax-supported sector, accounting for roughly 74% of all upgraded securities in 2Q17.”
The upgrades represented 11% of all U.S. public finance rating actions and $40.05 billion in par value. Approximately $21 billion of the Metropolitan Transportation Authority’s outstanding transportation revenue bond par value was upgraded in 2Q17, representing 52% of all upgraded par this quarter.
The downgrades represented 4.5% of all rating actions and $34.55 billion in par value.
Healthcare saw an uptick in upgrades and downgrades. Eleven credits were upgraded, an increase of seven from the prior quarter and above the sector’s four-quarter rolling average of 6.75. Nine credits were downgraded in 2Q17, an increase of three and slightly above the four-quarter rolling average of 8.5.
Positive Rating Watches increased to 21 from zero in 1Q17. Positive and Negative Outlooks remain unchanged.
For more information, a special report titled “U.S. Public Finance Rating Actions Second-Quarter 2017” is available on the Fitch Ratings web site at www.fitchratings.com or by clicking on the link.
Contact:
Jessalynn Moro
Managing Director
+1-212-908-0608
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
Arthur Tildesley
Associate Analyst
+1-646-582-4749
Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: [email protected].
Additional information is available on www.fitchratings.com