...Downgrades 2x Greater Than Upgrades: For the fourth quarter of 2015 non-financial corporate (corporate) downgrades exceeded upgrades by 2.1 to 1 (or 2x for the full year). The downgrade- to-upgrade ratio attributed to changes in the operating/industry profile was 1 to 1 (1.2x for the year). The downgrade of Brazilian corporate ratings (following the sovereign downgrade) and downgrades in the energy (oil and gas) and natural resources sectors drove over 40% of downgrades for the quarter. Continued rating changes are expected to be concentrated in these segments of the portfolio into 2016. Brazilian Downgrades: Eighty percent of sovereign-related downgrades were driven by Fitch's two downgrades of Brazil's (BB+) sovereign rating in the quarter. Brazil's Negative Outlook reflects the risk of further deterioration in the credit. Relative to the size of Fitch's portfolio, a disproportionate number of downgrades continue to emanate from Brazil ¡ 30% for 4Q15 (23% of 2015 downgrades). These actions...
