OREANDA-NEWS. Fitch Ratings says global structured finance extended its positive rating trend with upgrades outpacing downgrades in 2015 for the second consecutive year. Fitch last recorded two straight years of positive rating activity back in pre-crisis 2005-2006. The share of ratings affected by downgrades declined to 3.8% in 2015 from 6.7% in 2014. Upgraded ratings declined to 8.4% from 11.5% a year earlier.

Overall, global structured finance recorded a stability rate (ratings both unchanged and paid-in-full) of 88% in 2015, up from 82% in 2014. Across regions, SF stability rates remained high, led by APAC (96%), followed by North America (88%) and EMEA (84%).

Impairments (defaults and near-defaults) across global SF improved year-over-year, registering a 2015 impairment rate of 0.8% compared with 1.6% in 2014. Overall, global SF had the lowest impairment rate since 0.4% in 2006.

Global ABS continued to display a positive rating drift in 2015. For the second consecutive year, ABS recorded more upgrades than downgrades. The ABS downgrade rate, 1.1%, was below the 3.7% in 2014 and the lowest since 0.9% in 2007.

Rating activity improved for global RMBS in 2015. RMBS downgrades fell to 4.9% from 8.4% a year earlier. Upgrades slowed as well, with a 2015 RMBS upgrade rate of 9.7%, below the 13.5% recorded in a year earlier.

Global CMBS recorded largely positive rating activity in 2015. The 3.4% share of ratings downgraded trailed those upgraded (7.2%), similar to 2014. The stability rate for global CMBS remained in line year over year at 89%.