NEW YORK--(BUSINESS WIRE)-- Fitch Ratings today published a new study on the rating migration and default experience of Fitch-rated global corporate and structured finance short-term ratings in 2010, including the historical 21-year period.

Fitch's global short-term corporate finance (industrial and financial institution) Issuer Default Ratings (IDRs) exhibit a strong ability to differentiate default risk. Since 1990, defaults have been infrequent at the top of the rating scale ('F1+' and 'F1') and have mostly occurred during periods of stress. In addition, few defaults have involved actual missed payments on short-term debt obligations. Over an average 12-month horizon, spanning a 21-year period, the 'F1+' default rate has averaged 0.06%, the 'F1' default rate 0.07%, and the 'F2' rate 0.1%.

Short-term default patterns mirror those of long-term IDRs, with the incidence of default increasing with time. Fitch recorded the lowest default rates over average 30-day horizons (0% at both 'F1+' and 'F1') for the period spanning 1990-2010 with 60-day, 90-day, 180-day, and 270-day periods showing moderate increases in the frequency of default at each consecutive rating level.

Fitch recorded five short-term defaults in 2010, down from 19 in 2009. Of the five defaults, four were rated non-investment grade 12 months prior to default and none of the issuers had CP outstanding at the time of default. The resulting 2010 Fitch-rated short-term corporate finance average 12-month default rate was 0.25%, while the average 12-month default rate for the period 1990-2010 was 0.31%.

In the smaller universe of Fitch-rated short-term structured finance securities, there were no defaults in 2010.

The study is titled 'Fitch Ratings Global Short-Term 2010 Transition and Default Update' and is available on Fitch's web site under Credit Market Research.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research: Fitch Ratings Global Short-Term Rating Transition and Default Study 2010
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646970

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