July 2008 U.S. Term Credit Action Report
Fitch publishes a variety of rating opinions, scores and other relative measures of financial or operational strength. The most common are credit ratings, but Fitch Ratings also provide specialized ratings. These ratings provide an opinion on the financial health of an organization to meet financial commitments; these ratings are used by investors to indicate the likelihood of getting a return on the money and the terms under which it was invested.
Fitch issued five upgrades and 10 downgrades in July 2008, compared with four upgrades and 40 downgrades in June. Fitch has issued 271 upgrades and 793 downgrades through July 2008, compared to 133 upgrades and 35 downgrades during July2007. The downgrades of financial guarantors led to negative ratings in 2008.The equipment lease and auto loan sectors showed positive rating activity in July 2008. On the other hand, the aircraft and small business sectors saw downgrades during this same period.
In July, Fitch affirmed 149 ratings in the student loan, auto loan, equipment loans, small business loans, new assets, structured debt, airplane loans, and dealer floor plan sectors. Fitch expects the proportion of upgrades to downgrades to come under heavy pressure from current economic concerns.