FINANCIAL INSTITUTIONSSECTOR IN-DEPTH 2 SEPTEMBER 2015TABLE OF CONTENTSMost Banks Avoid Augusts Market Contagion. 1 Market-implied ratings tables for global banking regions and companies3Monthly Bank Risk Report: key credit metrics: CDS, bonds 4 Appendix : Moodys Capital Markets Research recent publications on the finance sector17ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst 250 Greenwich Street allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on Twitter Moodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services orproducts. For further detail, please see the last page.Bank Risk ReportMost Banks Avoid Augusts Market Contagion By Allerton (Tony) SmithMarket-implied ratings Market-implied ratings for the six banking regions we monitor globally were little affected by the volatility in various debt and equity markets around the world in August.We anticipate that most market-implied ratings for banks around the world will be narrowly range bound as the markets digest the potential for a September rate increase by the Federal reserve. Banks in the Asia region have greater potential for reaction as Chinas economic and market developments unfold.On August 31, the average CDS-implied ratings for the Europe, Africa and Middle East regions were unaltered from their levels at the end of July. The South America region benefited from a one-notch uptick in August. The North America and EMA regions experienced a one-notch decline.The average bond-implied ratings on August 31 for the North America, Africa, South America, and EMA regions were also unchanged from their levels at the end of July, while the Europe and Asia Pacific region each improved by one notch.In the North America region, 27 banks maintained the same bond-implied rating over the month, 12 banks bond-implied ratings dropped, and seven rose. The average bond-implied rating for the North America region remained at A3. The lowest bond-implied rating in the ...
