Fitch: U.S. Pub Fin Downgrades Fall Slightly in 4Q'12 though Negative Trends Persist

Fitch Ratings notes that during the fourth quarter of 2012 (4Q'12) and for the 16th consecutive quarter, U.S. public finance rating downgrades outnumbered upgrades. Both the number of upgrades and downgrades decreased from 3Q'12.

Negative actions are expected to remain elevated, as Negative Rating Outlooks exceeded Positive Rating Outlooks (3.8:1) in 4Q'12. However, a vast majority of rating actions (84%) during the fourth quarter were affirmations, with no change in Rating Outlook or Rating Watch status. Furthermore, 91% of ratings had a Stable Rating Outlook at the end of the fourth quarter.

Downgrades still account for a small percentage of total public finance rating actions. Fitch downgraded 41 credits, which represented approximately 5.2% of all rating actions and $31.9 billion in par value. In 3Q'12, Fitch downgraded 54 credits. Fitch upgraded 15 credits in the fourth quarter, which represented 1.9% of all rating actions and $7 billion in par value. In 3Q'12, Fitch upgraded 22 credits.

The full report 'U.S. Public Finance Rating Actions for Fourth Quarter 2012' 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 Fourth-Quarter 2012

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699899

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.

Contacts:

Fitch Ratings
Sarah Repucci, +1-212-908-0726
Senior Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Vincent Barberio, +1-212-908-0505
Managing Director
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here