- S&P Global Ratings took many negative rating actions on the top 250 most widely held loans in collateralized loan obligations in second-quarter 2020.
- Corporate downgrades were across the rating spectrum, but the 'B' category was most affected.
- Affirmations, including outlook revisions, made up most of the second-quarter rating actions.
After peaking in late March and early April 2020, the number of negative rating actions related to COVID-19 containment measures and oil price declines we've taken on U.S. corporate entities has moderated. Since early March, we've lowered or placed on CreditWatch our ratings on just under 31% of loan collateral in U.S. broadly syndicated loan collateralized loan obligations (BSL CLOs).
In this inaugural quarterly commentary, we illustrate how rating actions affected the most widely held corporate loans in CLOs (the Top 250) in the second quarter. To learn how these actions affected CLO tranche ratings, see the list of U.S. CLO tranche downgrades in 2020 and ratings on CreditWatch negative as of July 29, 2020.
Affirmations, Including Outlook Revisions, Made Up Most Of The Rating Actions
We Downgraded Companies In Nearly Every Sector
We Downgraded Fewer In The Top 50 Than In The Rest Of The Top 250
The 'B' Category Was Most Affected
Downgrades Greater Than One Notch Were Limited
Stable Outlooks Represent Slight Majority
- CLO Spotlight: U.S. CLO Rating Actions And Exposure To Negative Corporate Rating Actions (As Of July 26, 2020), July 29, 2020
- Leveraged Finance: U.S. Leveraged Finance Q2 2020 Update: Recovery Ratings Maintain Social Distance From Credit Impact Of COVID-19 Pandemic, July 23, 2020
- Credit Trends: Risky Credits: The Drop-Off To The 'CCC' Rating Category From 'B-' Still Looms Large, June 29, 2020
This report does not constitute a rating action.
|Primary Credit Analysts:||Robert E Schulz, CFA, New York (1) 212-438-7808;|
|Daniel Hu, FRM, New York (1) 212-438-2206;|
|Secondary Contacts:||Minni Zhang, New York;|
|Zoya Alam, New York;|
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