Probability-of-default (PD) estimates for corporate borrowers from some peripheral eurozone countries edged up during the third quarter of 2018.
The average weighted PD for corporate exposures across 39 countries, as determined by European banks, was 2.44% in Q3 2018, up from 2.43% in the previous quarter, but down from 3.01% a year prior. The average weighted loss-given-default (LGD) was 35.36%, unchanged on the quarter.
The highest average PD was reported for Greek corporate counterparties,
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