OREANDA-NEWS. Fitch Ratings says banks are the top choice of credit investors, according to respondents of the agency's latest European senior fixed-income investor survey.

In a sign that the rehabilitation of the banking sector is progressing, investment-grade financials are the most favoured marginal investment choice according to 27% of those polled. This is only the third time the asset class has been the top choice in our survey since 2010.

The positive endorsement is supported by financials being the sector in which most respondents expect to see improving fundamental credit conditions, with 43% expecting this trend, up from 40% in the 2Q15 survey. This is comfortably ahead of the runner-up, developing-market sovereigns, with 29% expecting an improving trend.

Fitch's Outlooks and Watches on EMEA banks are at their least negative net level since the financial crisis, indicating diminished downgrade risk for 2016. Positive Outlooks have risen to a post-crisis high, while entities on Negative Outlook have dropped close to the lowest level since 2011. The Outlook for developed-market EMEA banks is Stable, while Russian entities drive the Negative Outlook in emerging markets.

The Fitch Ratings Senior Fixed-Income Investor Survey was established in 2007 and is in its 29th edition. This survey garnered 67 responses, representing the views of managers of an estimated EUR7.5trn of fixed-income assets during 24 September-4 November 2015.