Corporate Credit Stuck in Holding Pattern: Fallen Angels and Rising Stars

Consensus credit data has indicated improving credit quality for global corporates in the last few months, but the latest data update paints a more nuanced picture.

There has been only a small increase in the number of Fallen Angels this month. Now, a total of 1,099 firms out of a global sample of 6,895 (16%) have migrated from investment-grade to high-yield at some point during the COVID period since February 2020, compared to last month’s total of 1,070. Of the firms that were downgraded at some point in this period, 736 (11%) still retain high-yield status, up only a little from 718 in the last update [please continue below to access full report].

Fallen Angels – Sector Comparison

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    Credit Benchmark brings together internal credit risk views from over 40 leading global financial institutions. The contributions are anonymized, aggregated, and published in the form of consensus ratings and aggregate analytics to provide an independent, real-world perspective of credit risk. Risk and investment professionals at banks, insurance companies, asset managers and other financial firms use the data for insights into the unrated, monitoring and alerting within their portfolios, benchmarking, assessing and analyzing trends, and fulfilling regulatory requirements and capital.