- During the COVID-19-led global recession, our corporate ratings performed as designed.
- The number of defaults rose, but all entities that defaulted in 2020 began the year rated speculative grade--and 94% with a rating in the ‘B’ category or lower.
- Default and downgrade rates were in line with the rank ordering of our ratings, with higher default and downgrade rates among the lower ratings, and vice versa.
- Annual stability rates displayed positive rank ordering in 2020, and most ratings had stability rates above their long-term averages.
How Did Our Ratings Perform During 2020
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China's Corporate Debt Slowdown Is Timely As Rate Cycle Turns