...Support Review Drives Changes: Fitch Ratings review of state support for banks globally affected 35 bank Issuer Default Ratings (IDRs) covered by this report, all negatively (see Sovereign Support for Banks ¡ Rating Path Expectations under Related Research). Developed Markets Still Negative: Negative Outlooks/Watches on bank ratings in developed markets (DMs) outweigh those in emerging markets (EMs). The gap widened significantly in 1Q14 due to the support exercise. The proportion of Stable Outlooks is higher in the EMs compared to the DMs (see Figure 1). European IDRs Most Affected: Over 45% of European DM IDRs are now on Negative Outlook/Watch (4Q13: 26%), reflecting weakening support assumptions or intrinsic pressures on creditworthiness. Negative Outlooks/Watches on European EM banks are also high, at just under a quarter. Eighty-two percent of global IDR downgrades in 1Q14 involved European banks. IDR Downgrades Far Outweigh Upgrades: There were 22 IDR downgrades in 1Q14 (4Q13: 18)...
