While corporate credit risk has been improving across many industries, some sectors are still dealing with large numbers of Fallen Angels, or companies that have seen their credit scores fall from investment grade to high-yield status. Since January 2021, a total of 235 companies (about 3%) out of global sample of 7667 have become Fallen Angels and still retain this status.
Of these, sectors with a heavy consumer focus tend to be in worse shape, such as Leisure Goods, which counts roughly 12% of its constituents as Fallen Angels, Travel & Leisure, with 8% and Construction & Materials with 5%.
On the flip side, in the Rising Stars category, which captures firms whose credit quality was high-yield but then moved to investment-grade, counts 343 entities out of a total global sample of 10,161 (3.4%) [please continue below to access full report].
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