Credit rating agency Fitch Ratings said today that the number of bank downgrades declined globally to 41 in the third quarter of 2009 from 94 in the second quarter of the year.
Overall, the number of bank rating actions taken by Fitch dropped to 90 from 183 during the same period, following particularly high levels of rating actions from the fourth quarter of 2008.
Fitch said that the majority of the rating actions (68) continued to be negative, but added that there were 22 positive actions compared to 13 in the second quarter.
Fitch said that most of its bank ratings globally continue to have stable outlooks (65%) at the end of the third quarter.
However, it said that in the case of certain major banks that have been subject to state aid, the stable outlook it as a result of government support rather than Fitch's view of fundamental performance.
Fitch said it continues to be concerned about the impact of changes in real economies on banks, despite improved performance in financial markets.
The rating agency said its bank ratings already incorporate an expectation of further stress in commercial property, particularly in speculative/development, and residential construction sectors.
Meanwhile, Fitch also today affirmed Bank of Ireland's mortgage covered bond ratings at 'AAA' and removed them from 'under analysis'. They had been placed there last July pending the implementation of the agency's updated criteria.
