Deterioration in credit quality a concern, rating agency says
Rating actions forecast to be predominately negative through the next 18 months
Ratings supported by earnings diversity
S&P affirms ratings on CIBC
Despite improvement, the number of downgrades remains very elevated by historical standards
Ratings underpinned by strong domestic banking
Although the rating agency is concerned about the securities’ makeup, the decision does not affect the banks’ credit ratings
The rating agency predicts the global default rate will peak at 12.8% in the fourth quarter
Recovery rates are also being affected by typical cyclical and industry specific challenges as well as new stressors