Weakest links at lowest levels since spring 2019 – S&P Global Ratings

S&P Global Ratings said in a new report issued today that as of Nov. 18, the count of weakest links — issuers rated B- or lower by S&P Global Ratings and with negative outlooks or on CreditWatch Negative — is 216, down by 55% in 2021 and at its lowest level since April 2019.

Ratings attributed the drop in weakest links to "a decrease in the number of lower rated issuers with a negative bias, which has fallen to a record low of 24% in November," down from 52% in December 2020 and from a pandemic-era peak around 67% earlier in 2020.

Geographically, Ratings said the global drop in weakest links was "primarily driven" by the U.S. and Canada, with a combined 143 weakest link issuers at Nov. 18, down from 358 in December 2020. Of those leaving the list, 61% were because of outlook or CreditWatch revisions and 23% were upgraded.

The rating agency pointed out that risks to ratings continue, noting that more than 30% of speculative-grade issuers are rated B- or lower.