...Negative Outlooks in DMs Remain: Negative Outlooks/Watches on bank Issuer Default Ratings (IDR) in developed markets (DMs) outweigh those in emerging markets (EMs) (see Figure 1). DM Negative Outlooks/Watches rose sharply in 1Q14 following Fitch Ratings review of state support (see Global Quarterly Bank Rating Trends 1Q14 and Sovereign Support for Banks ¡ Rating Path Expectations under Related Research below). Outlooks are expected to be resolved by 1H15. Declining Stock of Stable Outlooks: Globally, Stable Outlooks had been inching forwards reaching 80% of all bank ratings at 3Q13 (see Figure 2). However, this trend was thrown off course largely as a result of the above support review. Only 72% of bank IDRs globally at end- 2Q14 had Stable Outlooks. European DMs Still Negative: Prospects for DM European banks IDRs remain tough ¡ around 44% of IDRs are on Negative Outlook/Watch ¡ largely due to the changed assumptions relating to state support, as described above. Going forward, DM European...
