Rating agencies expect more downgrades among US corporate bonds

Rating agencies reportedly expect a greater share of the lowest-quality investment-grade bonds to be downgraded than to be upgraded.

That’s the first time this has been the case in this part of the U.S. corporate bond market since the end of 2021, the Financial Times (FT) reported Monday (May 27).

The proportion of these bonds that is on “negative watch” is at 5.7%, while the percentage that is on “positive watch” is at 5.3%, according to the report.

In early January, those figures were at 2.9% and 7.9%, respectively, the report said.

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