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Credit Trends: U.S. Corporate Downgrades Fell To Pre-Pandemic Levels In The Third Quarter

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Default, Transition, and Recovery: 2019 Annual Emerging Markets Corporate Default And Rating Transition Study

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Default, Transition, and Recovery: Default Rates Continue To Climb As Weakest Links Remain Elevated

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Default, Transition, and Recovery: The U.S. Speculative-Grade Corporate Default Rate Could Rise To 9% By September 2021

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Default, Transition, and Recovery: Oil And Gas Leads 2020 Global Corporate Defaults, Reflecting Sector Challenges


Credit Trends: U.S. Corporate Downgrades Fell To Pre-Pandemic Levels In The Third Quarter

After hitting a record high in the second quarter of 2020, the number of U.S. corporate downgrades fell in the third quarter to its lowest level since fourth-quarter 2018. S&P Global Ratings lowered 107 U.S. corporate issuer credit ratings in the third quarter--74% fewer downgrades than in the second quarter--as upgrades nearly doubled to 43. Downgrades abruptly slowed and upgrades increased as U.S. GDP rebounded in the third quarter.

Chart 1

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Negative Bias Declined As Economic Growth Rebounded

Downgrade potential began to dip in the third quarter for speculative-grade (rated 'BB+' or lower) companies after reaching a record high in the second quarter. Credit conditions turned less negative for companies as consumer spending held up better than expected after earlier fiscal stimulus. S&P Global economists predict U.S. GDP grew at an annualized rate of 29.5% in the third quarter, taking an abrupt turn from a 31.4% contraction in the second quarter.

The negative bias (which measures downgrade potential as the percentage of issuer credit ratings with negative outlooks or on CreditWatch with negative implications) for speculative-grade companies fell to 47% on Sept. 30, 2020, from 52% at the end of June.

Meanwhile, the negative bias for investment-grade (rated 'BBB-' or higher) companies held nearly unchanged at 26% (see charts 2 and 3). The overall negative bias (including both investment- and speculative-grade) fell by 3 percentage points to 41%.

Chart 2

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Chart 3

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The share of speculative-grade companies with ratings on CreditWatch with negative implications fell by more than half to near 3% in the third quarter, as downgrade risk continues to shift from the near term into the intermediate term (see chart 4). A rating on CreditWatch indicates a 1-in-2 chance of a rating change within the next 90 days, while a negative outlook indicates a 1-in-3 chance of downgrade within up to two years for investment-grade companies and generally up to one year for speculative-grade companies.

Chart 4

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Lower-rated companies remain at highest risk of downgrades

While the negative bias declined for speculative-grade companies, their downgrade potential remains elevated. The risk is highest for the lowest-rated issuers, and we believe many sectors will not recover their pre-COVID-19 credit metrics until 2022 or, in some cases, 2023. With their weaker credit metrics, lower-rated entities are not as well positioned to weather a business, financial, or economic shock as higher-rated peers. The lowest rating level, 'CCC'/'C', has the highest negative bias, at 89%, followed by 'B+' with a negative bias of 45% and 'B-' with a negative bias of 44% (see chart 5).

Chart 5

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With consumer spending proving resilient and GDP growth rebounding in the third quarter, the negative bias declined by 1 percentage point or more in 12 of 18 U.S. sectors (see chart 6).

Chart 6

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The oil and gas sector now has the highest negative bias, at 69%, following a 12 percentage point decrease in the third quarter. S&P Global Ratings recently revised its West Texas Intermediate assumption for the remainder of 2020 to $35 per barrel from $25 (the 2021 assumption is unchanged at $45) and cut its assumption for 2022 to $45 from $50. While this change supports credit quality in the near term, these price assumptions are below the average break-even prices (near $50) for U.S. shale. As prices remain below break-even, weaker-rated companies, particularly those with large exposure to oil, remain vulnerable to negative rating actions. More than two-fifths of all rated companies in the sector are rated 'B-' or lower, and more distressed exchanges and bankruptcies are likely over the next year.

Although the negative bias for the automotive sector declined by 17 percentage points in the quarter, it remains elevated at 66% (see chart 7). The negative bias fell as U.S. light vehicle sales grew for four consecutive months through August. However, amid questions about the sustainability of recent demand, we expect sales to remain below 2019 levels through 2022. S&P Global Ratings currently forecasts U.S. light vehicle sales will decline 21% year over year to 13.3 million units in 2020. Speculative-grade auto suppliers have experienced the most credit deterioration in the sector.

The media and entertainment sector had the third-highest negative bias at the end of the third quarter, at 61%, down 3 percentage points since the end of the second quarter. S&P Global Ratings doesn't expect a recovery for out-of-home entertainment issuers from the leisure, live events, and movie exhibitor subsectors in the near term, given consumers may not return to venues until a vaccine is widely available. Even when credit metrics do recover, media and entertainment companies may remain at risk to negative rating actions, as existing secular pressures worsened because of the pandemic. With near 40% of all rated issuers in the sector rated 'B-' or lower, more negative rating actions are likely, especially if the economic recovery slows.

Chart 7

image

Only high tech shows a negative bias below its long-term average

One way we examine downgrade propensity is by comparing the current negative bias with the historical average. The number of sectors with above-average negative bias fell to 17 in the third quarter after all 18 sectors had above-average negative bias at the end of the second quarter. Currently, only the high technology sector displays a negative bias below its long-term average, as credit quality in this sector has held up relatively well amid the pandemic. In particular, rated companies in the services, hardware, and semiconductors subsectors have performed better than expected.

Chart 8

image

The sectors with current negative biases that are highest above their historical averages are oil and gas and autos (see chart 9).

We use a similar approach to gauge upgrade potential, comparing the current positive bias (the proportion of issuer credit ratings with positive outlooks or on CreditWatch with positive implications) of a sector with its long-term average. As we saw in the second quarter, no sectors currently show above-average upgrade potential (see chart 10).

Chart 9

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Chart 10

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Downgrades Fell By 74% In The Third Quarter As Upgrades Nearly Doubled

U.S. corporate downgrades totaled 107 in the third quarter, a decline of 74% from the second quarter. Upgrades nearly doubled in the quarter to 43, the highest number since third-quarter 2019 (which also had 43 upgrades). Nonfinancial corporate issuers accounted for 102 downgrades and 39 upgrades. Financial services issuers had just five downgrades during the quarter and nearly as many upgrades (with four) (see chart 11).

Chart 11

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Speculative-grade downgrades declined by 75% in the quarter, falling to 95, their lowest level since fourth-quarter 2018. Investment-grade downgrades fell to 12 in the quarter, matching the number from third-quarter 2019 (see chart 12).

The number of speculative-grade upgrades rose in the quarter to 40, reaching its highest level since second-quarter 2019. The number of investment-grade upgrades was unchanged at three (see chart 13).

Chart 12

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Chart 13

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Table 1

Third-Quarter 2020 U.S. Corporate Ratings Statistics
Overall Investment grade Speculative grade Financial Nonfinancial
Downgrades (issuer count) 107 12 95 5 102
Debt volume (bil. US$) 449.5 273.7 175.8 234.4 215.1
Upgrades (issuer count) 43 3 40 4 39
Debt volume (bil. US$) 126.6 9.3 117.3 2.9 123.6
Total rating actions 150 15 135 9 141
Downgrade ratio 71.3% 80.0% 70.4% 55.6% 72.3%
Historical average 63.9% 59.9% 64.9% 54.6% 64.9%
High, quarter 95% 2020Q2 92% 2020Q2 95% 2020Q2 100% 2000Q3 95% 2020Q2
Low, quarter 30% 1997Q3 21% 2012Q2 25% 1997Q3 9% 1996Q3 30% 1997Q3
Negative bias 41% 26% 47% 30% 43%
Historical average 22% 16% 26% 18% 22%
High, quarter 44% 2020Q2 28% 2009Q3 52% 2020Q2 45% 2009Q3 46% 2020Q2
Low, quarter 11% 2013Q4 9% 2013Q4 12% 2014Q2 4% 1996Q1 11% 2014Q2
Positive bias 3% 2% 4% 2% 3%
Historical average 9% 7% 11% 8% 10%
High, quarter 17% 1996Q3 14% 1997Q4 23% 1996Q2 17% 2006Q1 17% 1996Q2
Low, quarter 2% 2020Q2 1% 2020Q2 2% 2020Q2 2% 2020Q3 2% 2020Q2
Historical average from 1995Q1-2020Q3. See tables 4 and 5 for details. Rating changes exclude entities with no rated debt. Data as of Sept. 30, 2020, Source: S&P Global Ratings Research.

Downgrades Were Concentrated At The Lowest Ratings

Downgrades were increasingly concentrated among companies at the lowest rating levels in the third quarter. About 53% of downgrades were of issuers rated 'B-' and lower, up from 39% in the second quarter. Most of these downgrades were of companies rated 'CCC+' and lower, which have the weakest credit metrics and have been less resilient to the rapid deterioration of business and economic conditions.

Meanwhile, 47% of upgrades were also from issuers rated 'B-' and lower. Many of these upgrades reflected better-than-expected financial performance or improved refinancing prospects or liquidity (see chart 14).

Chart 14

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Media And Entertainment And Consumer Products Led Downgrades

The media and entertainment sector had the highest number of downgrades for a third consecutive quarter, with 21, down from 80 in the second quarter. All of the third-quarter downgrades from this sector were of speculative-grade companies. Most rating actions in the sector have been concentrated among the travel, leisure, local media, live events, and movie exhibitor subsectors.

The consumer products sector had the second-highest number of downgrades, with 18, all of speculative-grade companies. Upgrades in the sector rose to six (from two in the second quarter). While consumer staples have experienced an increase in demand, which has been a modest credit positive, discretionary subsectors face material declines in sales and profits, and credit metrics will likely take two to three years to recover to 2019 levels. Downgrades in the third quarter were concentrated among issuers within the apparel, food service, and cosmetics subsectors. More negative rating actions in each sector are likely amid tighter financing conditions for weaker-rated issuers, but there are signs that credit deterioration might have peaked.

Downgrades in the oil and gas sector fell to 12 in the third quarter from 48 in the previous quarter. All of these downgrades were of speculative-grade issuers.

The utility sector had the fourth-highest number of downgrades in the quarter, with 11. These downgrades were largely of speculative-grade midstream companies, for which lower commodity prices have affected the creditworthiness of their upstream counterparties.

Although the financial institutions sector had a relatively low number of downgrades, with three, it had the most debt affected by downgrades in the quarter. The downgrade of Wells Fargo & Co. to 'BBB+' from 'A-' accounted for nearly all downgraded debt in the financial institutions sector in the quarter. Wells' overall creditworthiness has declined given the company's ongoing regulatory challenges and preprovision earnings pressures amid the economic downturn.

Chart 15

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Table 2

U.S. Rating Actions By Sector (Third-Quarter 2020)
--Number-- --Mil. US$-- --Totals--
Up Down Up Down Number Mil. US$
Aerospace/defense 2.0 3.0 1,284.0 12,057.0 5.0 13,341.0
Automotive 1.0 2.0 5,998.0 2,431.0 3.0 8,429.0
Capital goods 2.0 2.0 2,099.0 942.0 4.0 3,041.0
Chemicals, packaging, and environmental services 2.0 4.0 1,625.0 4,675.0 6.0 6,300.0
Consumer products 6.0 18.0 5,945.0 33,412.0 24.0 39,357.0
Financial institutions 2.0 3.0 2,500.0 225,204.0 5.0 227,704.0
Forest products and building materials 1.0 3.0 445.0 1,130.0 4.0 1,575.0
Health care 1.0 2.0 8,664.0 9,950.0 3.0 18,614.0
High technology 7.0 6.0 8,615.0 13,940.0 13.0 22,555.0
Homebuilders/real estate companies 0.0 3.0 0.0 17,693.0 3.0 17,693.0
Insurance 2.0 2.0 420.0 9,166.0 4.0 9,586.0
Media and entertainment 3.0 21.0 26,769.0 56,928.0 24.0 83,697.0
Metals, mining, and steel 0.0 6.0 0.0 4,800.0 6.0 4,800.0
Oil and gas 1.0 12.0 1,950.0 24,291.0 13.0 26,241.0
Retail/restaurants 6.0 2.0 4,962.0 4,939.0 8.0 9,901.0
Telecommunications 2.0 2.0 22,350.0 1,959.0 4.0 24,309.0
Transportation 2.0 5.0 2,040.0 5,460.0 7.0 7,500.0
Utilities 3.0 11.0 30,885.0 20,514.0 14.0 51,399.0
Total 43.0 107.0 126,551.0 449,491.0 150.0 576,042.0
Media and entertainment includes leisure. Utility sector includes midstream companies. Rating changes exclude entities with no rated debt. Data as of Sept. 30, 2020. Source: S&P Global Ratings Research.

Fewer Fallen Angels In The Third Quarter

Fallen angels (issuers downgraded to speculative grade from investment grade) totaled three in the third quarter, down from six in the second quarter. These were aerospace company Howmet Aerospace Inc., fashion retailer Nordstrom Inc., and natural gas pipeline operator Southeast Supply Header LLC.

There was one rising star (an issuer upgraded to investment grade from speculative grade) in the quarter: Mediacom Communications Corp.

Table 3

2016Q1-2020Q3 S&P Global Ratings Trends: U.S. Corporates
Defaulted issuers Weakest links Fallen angels Rising stars Potential downgrades Potential upgrades
2016Q1 30 165 9 6 315 141
2016Q2 32 187 4 4 339 150
2016Q3 25 179 5 5 324 156
2016Q4 18 178 4 4 320 143
2017Q1 17 169 5 0 290 158
2017Q2 23 154 0 9 301 152
2017Q3 9 156 2 5 294 166
2017Q4 15 147 6 3 294 176
2018Q1 18 138 1 5 284 184
2018Q2 14 144 5 4 294 190
2018Q3 3 145 4 5 301 197
2018Q4 12 145 6 2 301 182
2019Q1 21 151 4 1 308 166
2019Q2 23 168 2 2 314 153
2019Q3 13 179 3 2 320 138
2019Q4 20 196 4 7 349 126
2020Q1 21 319 13 1 571 93
2020Q2 62 431 6 1 775 41
2020Q3 37 391 3 1 724 59
Data as of Sept. 30, 2020. Source: S&P Global Ratings Research.

Defaults Remain Elevated

The default tally fell to 37 in the third quarter from 62 in the second. Despite the decline, defaults remained considerably higher than in third-quarter 2019 (when 13 companies defaulted). Through Sept. 30, U.S. corporate defaults in 2020 totaled 120, more than double the number over the same period last year.

Even as defaults remain elevated, the number of issuers at greatest risk of default declined in the third quarter. The number of weakest links (issuers rated 'B-' or lower with negative outlooks or ratings on CreditWatch negative) fell to 391 during the quarter from 431 at the end of the second quarter. Still, the number of weakest links is twice as high as in third-quarter 2019. The elevated number supports our view that the U.S. trailing-12-month speculative-grade corporate default rate will continue to climb, reaching 12.5% in June 2021.

Table 4

U.S. Corporate Upgrades (Third-Quarter 2020)
Issuer Country To From Date Sector

Alion Science and Technology Corp.

U.S. B+ B 7/10/2020 Aerospace/defense
MHI Holdings LLC U.S. B+ B 9/2/2020 Aerospace/defense
Tesla Inc. U.S. B+ B- 7/28/2020 Automotive

Big Ass Fans LLC

U.S. B- CCC+ 9/30/2020 Capital goods

LTI Holdings Inc.

U.S. B- CCC+ 8/31/2020 Capital goods

ASP Emerald Holdings LLC

U.S. B B- 7/29/2020 Chemicals, packaging, and environmental services
Zinc-Polymer Parent Holdings LLC U.S. B- CCC+ 9/29/2020 Chemicals, packaging, and environmental services
Badger Finance LLC (Badger Intermediate Holdings LLC) U.S. B- CCC 9/11/2020 Consumer products

CHG PPC Intermediate II LLC

U.S. B B- 9/24/2020 Consumer products
GoodRx Inc. U.S. B+ B 8/28/2020 Consumer products

Kronos Acquisition Holdings Inc.

U.S. B- CCC+ 7/21/2020 Consumer products
Utz Brands Holdings LLC (Utz Brands Inc.) U.S. B B- 8/31/2020 Consumer products

Vista Outdoor Inc.

U.S. B+ B 8/20/2020 Consumer products
Finial Holdings Inc. (Berkshire Hathaway Inc.) U.S. BBB+ BBB 9/25/2020 Financial institutions

FS Energy and Power Fund

U.S. B B- 7/23/2020 Financial institutions

Legg Mason Inc.

U.S. A BBB 7/31/2020 Financial institutions

Sabre Industries Inc.

U.S. B+ B 9/25/2020 Forest products and building materials
Avantor Funding Inc. (Avantor Inc.) U.S. BB- B+ 8/6/2020 Health care

Advanced Micro Devices Inc.

U.S. BB+ BB 8/20/2020 High technology
Dynatrace Inc. U.S. BB- B 8/21/2020 High technology

II-VI Inc.

U.S. BB- B+ 7/2/2020 High technology

Lattice Semiconductor Corp.

U.S. BB- B+ 9/17/2020 High technology

ON Semiconductor Corp.

U.S. BB+ BB 8/17/2020 High technology

Unisys Corp.

U.S. B B- 7/13/2020 High technology

Vungle Inc.

U.S. B+ B 8/14/2020 High technology

APCO Super Holdco LP

U.S. B B- 9/4/2020 Insurance

Activision Blizzard Inc.

U.S. A- BBB+ 7/24/2020 Media and entertainment
Dun & Bradstreet Corp. (The) U.S. B+ B- 7/9/2020 Media and entertainment
Netflix Inc U.S. BB BB- 7/28/2020 Media and entertainment

Comstock Resources Inc.

U.S. B B- 9/24/2020 Oil and gas

At Home Group Inc.

U.S. B- CCC+ 8/13/2020 Retail/restaurants
BI-LO LLC (BI-LO Holding Finance LLC) U.S. B B- 8/14/2020 Retail/restaurants
Fresh Market Inc. (The) U.S. CCC+ CCC 7/9/2020 Retail/restaurants

Ingles Markets Inc.

U.S. BB BB- 8/19/2020 Retail/restaurants

New Academy Holding Co. LLC

U.S. B- CCC+ 9/25/2020 Retail/restaurants

PHD Group Holdings LLC

U.S. CCC+ CCC 8/19/2020 Retail/restaurants

Iridium Communications Inc.

U.S. B+ B 8/13/2020 Telecommunications

Mediacom Communications Corp.

U.S. BBB BB+ 8/21/2020 Telecommunications

WillScot Mobile Mini Holdings Corp.

U.S. BB- B+ 7/1/2020 Transportation

YRC Worldwide Inc.

U.S. CCC+ CCC 7/9/2020 Transportation
Calpine Corp. (Volt Parent L.P.) U.S. BB- B+ 9/28/2020 Utility
ExGen Renewables IV LLC (Exelon Corp.) U.S. B+ B 7/16/2020 Utility

NRG Energy Inc.

U.S. BB+ BB 7/24/2020 Utility
Rating changes exclude sovereigns and entities with no rated debt. Data as of June 30, 2020. Source: S&P Global Ratings Research.

Table 5

U.S. Corporate Downgrades (Third-Quarter 2020)
Issuer Country To From Date Sector
Howmet Aerospace Inc. U.S. BB+ BBB- 9/9/2020 Aerospace/defense

Spirit AeroSystems Inc.

U.S. B B+ 8/3/2020 Aerospace/defense
Wesco Aircraft Holdings Inc. (Wolverine Intermediate Holding Corp.) U.S. CCC+ B- 8/19/2020 Aerospace/defense

Garrett Motion Inc.

U.S. B BB- 9/4/2020 Automotive

Wabash National Corp.

U.S. B+ BB- 9/10/2020 Automotive
MAI Holdings Inc. U.S. SD CCC- 9/9/2020 Capital goods

MTS Systems Corp.

U.S. B+ BB- 7/16/2020 Capital goods

LSB Industries Inc.

U.S. CCC CCC+ 7/31/2020 Chemicals, packaging, and environmental services

Momentive Performance Materials Inc.

U.S. B B+ 7/23/2020 Chemicals, packaging, and environmental services
SK Blue Holdings L.P. Cayman Islands B- B 7/15/2020 Chemicals, packaging, and environmental services

US Ecology Inc.

U.S. BB- BB 7/2/2020 Chemicals, packaging, and environmental services

361 Degrees International Ltd.

Cayman Islands B- B+ 8/31/2020 Consumer products
ARAMARK Holdings Corp. U.S. BB- BB 8/17/2020 Consumer products

Ascena Retail Group Inc.

U.S. D CCC- 7/23/2020 Consumer products

Boardriders Inc.

U.S. SD CCC+ 9/4/2020 Consumer products
CB Poly Investments LLC U.S. SD B- 7/28/2020 Consumer products

Coty Inc.

U.S. B- B 7/7/2020 Consumer products
Jill Acquisition LLC (Jill Holdings LLC) U.S. CC CCC- 9/1/2020 Consumer products

KC Culinarte Holdings LP

U.S. CCC CCC+ 9/3/2020 Consumer products

KCIBT Holdings LP

U.S. SD CCC+ 8/24/2020 Consumer products

Oak Holdings LLC

U.S. B- B 8/25/2020 Consumer products
Output Services Group Inc. U.S. CCC CCC+ 9/22/2020 Consumer products

Premier Brands Group Holdings LLC

U.S. SD B- 9/4/2020 Consumer products

Renfro Corp.

U.S. SD CCC- 7/20/2020 Consumer products

Revlon Inc.

U.S. CC CCC- 7/28/2020 Consumer products

Tailored Brands Inc.

U.S. D CCC+ 7/2/2020 Consumer products
TMK Hawk Parent Corp. U.S. CCC CCC+ 9/10/2020 Consumer products

Tupperware Brands Corp.

U.S. SD CC 7/10/2020 Consumer products

US Foods Inc.

U.S. BB- BB 9/8/2020 Consumer products
Greystar Real Estate Partners LLC U.S. B+ BB- 7/15/2020 Financial institutions
Intercontinental Exchange Inc. U.S. BBB+ A 8/10/2020 Financial institutions

Wells Fargo & Co.

U.S. BBB+ A- 7/22/2020 Financial institutions

Northwest Hardwoods Inc.

U.S. SD CCC- 8/21/2020 Forest products and building materials
Omnimax International Inc. U.S. D CCC- 8/19/2020 Forest products and building materials
Tensar Corp. (The) U.S. CCC B- 8/24/2020 Forest products and building materials
Elanco Animal Health Inc. U.S. BB BB+ 8/5/2020 Health care
Pioneer UK Midco 1 Ltd. U.S. B- B 9/24/2020 Health care
DXC Technology Co. U.S. BBB- BBB 7/2/2020 High technology
Electronics for Imaging Inc. U.S. CCC+ B- 7/2/2020 High technology
GlobalLogic Holdings Ltd. U.S. B B+ 8/5/2020 High technology
Omnitracs Holdings LLC U.S. B- B 9/10/2020 High technology
SuperMoose Newco Inc. U.S. CCC CCC+ 9/17/2020 High technology
Xerox Holdings Corp. U.S. BB BB+ 8/3/2020 High technology

Boston Properties Inc.

U.S. BBB+ A- 8/3/2020 Homebuilders/real estate companies

Service Properties Trust

U.S. BB- BB 8/26/2020 Homebuilders/real estate companies

Washington Prime Group Inc.

U.S. CCC CCC+ 8/24/2020 Homebuilders/real estate companies

Doctors Co. an Interinsurance Exchange

U.S. BBB+ A- 8/17/2020 Insurance
Jackson National Life Insurance Co. (Prudential PLC) U.S. A A+ 8/11/2020 Insurance

Affinity Gaming

U.S. CCC+ B- 7/17/2020 Media and entertainment

AMC Entertainment Holdings Inc.

U.S. SD CC 8/3/2020 Media and entertainment

AVSC Holding Corp.

U.S. CCC- CCC 9/3/2020 Media and entertainment

Bioplan USA Inc.

U.S. CCC CCC+ 7/10/2020 Media and entertainment

Carlson Travel Inc

U.S. CC CCC 7/10/2020 Media and entertainment

Cedar Fair L.P.

U.S. B- B+ 9/30/2020 Media and entertainment

Cengage Learning Holdings II Inc.

U.S. CCC+ B- 9/4/2020 Media and entertainment

Cinemark Holdings Inc.

U.S. B+ BB- 8/10/2020 Media and entertainment

Clear Channel Outdoor Holdings Inc.

U.S. CCC+ B- 7/21/2020 Media and entertainment

Hornblower HoldCo LLC

U.S. CCC- CCC+ 7/29/2020 Media and entertainment
IAC/InterActiveCorp U.S. BB BB+ 8/12/2020 Media and entertainment
Lakeland Holdings LLC U.S. CCC- CCC+ 7/16/2020 Media and entertainment

Lindblad Expeditions Holdings Inc.

U.S. B- B 9/2/2020 Media and entertainment
McGraw-Hill Education Inc. U.S. CCC+ B- 9/4/2020 Media and entertainment

NCL Corp. Ltd.

Bermuda B+ BB- 8/12/2020 Media and entertainment

Royal Caribbean Cruises Ltd.

U.S. B+ BB 8/31/2020 Media and entertainment

Ryman Hospitality Properties Inc.

U.S. B- B 7/28/2020 Media and entertainment

Sabre Corp.

U.S. B B+ 8/20/2020 Media and entertainment

Six Flags Entertainment Corp.

U.S. B- B+ 9/30/2020 Media and entertainment

Town Sports International Holdings Inc.

U.S. SD CC 8/26/2020 Media and entertainment

Travel Leaders Group LLC

U.S. CCC B- 7/17/2020 Media and entertainment
Alliance Resource Partners, L.P. U.S. B+ BB- 9/14/2020 Metals, mining, and steel
Arch Resources Inc. U.S. B B+ 8/12/2020 Metals, mining, and steel

Hi- Crush Inc.

U.S. D CC 7/13/2020 Metals, mining, and steel

Hi- Crush Inc.

U.S. CC CCC+ 7/2/2020 Metals, mining, and steel

Peabody Energy Corp.

U.S. B B+ 7/10/2020 Metals, mining, and steel

Peabody Energy Corp.

U.S. CCC+ B 8/14/2020 Metals, mining, and steel

Ascent Resources Utica Holdings LLC

U.S. CC CCC+ 9/11/2020 Oil and gas
Bruin E&P Partners LLC U.S. D CC 7/17/2020 Oil and gas
California Resources Corp. U.S. D CC 7/1/2020 Oil and gas
Chaparral Energy Inc. U.S. D CCC- 7/16/2020 Oil and gas
Denbury Resources Inc. U.S. D CCC+ 7/2/2020 Oil and gas
Forum Energy Technologies Inc. U.S. CC CCC- 7/7/2020 Oil and gas
Forum Energy Technologies Inc. U.S. SD CC 8/4/2020 Oil and gas

FTS International Inc.

U.S. CC CCC- 8/25/2020 Oil and gas

FTS International Inc.

U.S. D CC 9/23/2020 Oil and gas

Oasis Petroleum Inc.

U.S. CCC- CCC+ 7/2/2020 Oil and gas

Oasis Petroleum Inc.

U.S. D CCC- 9/18/2020 Oil and gas
UTEX Industries Inc. U.S. D CCC 8/10/2020 Oil and gas

Nordstrom Inc.

U.S. BB+ BBB- 9/3/2020 Retail/restaurants
Party City Holdings Inc. (PC Nextco Holdings LLC) U.S. SD CC 7/27/2020 Retail/restaurants

Global Eagle Entertainment Inc.

U.S. D CCC- 7/22/2020 Telecommunications

IPC Corp.

U.S. CCC CCC+ 9/30/2020 Telecommunications

eHi Car Services Ltd.

Cayman Islands B B+ 8/23/2020 Transportation

SIRVA Inc.

U.S. CCC+ B- 8/25/2020 Transportation

The Pasha Group

U.S. B- B 9/23/2020 Transportation

United Airlines Holdings, Inc

U.S. B+ BB- 7/9/2020 Transportation

Voyager Aviation Holdings LLC

U.S. CCC+ B 7/22/2020 Transportation
Commonwealth Edison Co. (Exelon Corp.) U.S. BBB+ A- 7/21/2020 Utility
ENN Energy Holdings Ltd. (ENN Investment Holdings Co. Ltd.,) Cayman Islands BBB BBB+ 9/7/2020 Utility
Epic Crude Services L.P. (EPIC Midstream Holdings L.P.) U.S. B- B 9/17/2020 Utility
GCL New Energy Holdings Ltd. (GCL-Poly Energy Holdings Ltd.) Bermuda CCC- CCC 9/14/2020 Utility

Martin Midstream Partners L.P.

U.S. CC CCC- 7/10/2020 Utility

Martin Midstream Partners L.P.

U.S. SD CC 8/14/2020 Utility
PSEG Power LLC (Public Service Enterprise Group Inc.) U.S. BBB BBB+ 8/5/2020 Utility

Southeast Supply Header LLC

U.S. BB+ BBB- 9/22/2020 Utility
Summit Midstream Partners L.P. U.S. CC CCC 9/2/2020 Utility
Summit Midstream Partners L.P. U.S. SD CC 9/25/2020 Utility
Third Coast Midstream LLC U.S. B- B 8/18/2020 Utility
Rating changes exclude sovereign and entities with no rated debt. Data as of Sept. 30, 2020. Source: S&P Global Ratings Research.

S&P Global Ratings acknowledges a high degree of uncertainty about the evolution of the coronavirus pandemic. The current consensus among health experts is that COVID-19 will remain a threat until a vaccine or effective treatment becomes widely available, which could be around mid-2021. We are using this assumption in assessing the economic and credit implications associated with the pandemic (see our research here: www.spglobal.com/ratings). As the situation evolves, we will update our assumptions and estimates accordingly.

Related Research

This report does not constitute a rating action.

Ratings Performance Analytics:Nick W Kraemer, FRM, New York (1) 212-438-1698;
nick.kraemer@spglobal.com
Evan M Gunter, New York (1) 212-438-6412;
evan.gunter@spglobal.com
Jon Palmer, CFA, New York;
jon.palmer@spglobal.com
Research Contributor:Lyndon Fernandes, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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