OREANDA-NEWS. Global default activity remains below historical averages through first-half 2015, alongside continuing pockets of economic weakness -- especially among the larger emerging markets (EM) countries -- Brazil, Russia and China, according to a study by Fitch Ratings. Across broad sectors -- corporates, sovereigns, and public finance, Fitch recorded no investment-grade defaults.

The Fitch-rated global corporate finance (financial and non-financial institutions) default rate through June was 0.8%, with a speculative-grade default rate of 2.7% -- up from year-earlier and the highest since 2012. Brazilian industrials and Greek banks (after the imposition of government capital controls in June) contributed to the increase.

First half corporate downgrades led upgrades by nearly 2 to 1, with 12% of issuers' affected by a rating change. In part, this was due to the removal of sovereign support from the ratings of most EU, U.S. and Swiss banks to reflect maturing bank resolution regimes.

Impairment activity across global structured finance in the first-half of 2015 was the lowest since the economic crisis. The speculative-grade impairment rate was 0.23% through June. The RMBS sector registered an impairment rate of 0.07%, versus 0.1% for ABS, 0.3% for structured credit and 0.8% for CMBS.

There were no sovereign, U.S. public finance, or international public finance foreign currency defaults recorded in the first six months of 2015.

The complete study 'Fitch Ratings Global Cross-Asset Default Update' is available on Fitch's web site under Transition and Default Studies. The study contains default rate results by broad sector and region.