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Global Actions On Corporations, Sovereigns, International Public Finance, And Project Finance To Date In 2021

The pace of rating actions has continued to decline after reaching highs in April 2021. The downgrade ratio (downgrades as a percentage of total rating actions) has also declined further; this month as of July 16, there have been only 10 downgrades compared with 28 upgrades. So far in 2021, 392 issuers have had a negative rating action, and 1,178 issuers have had a positive rating action. The largest percentage of rating actions has been due to an outlook revision to stable from negative. This has largely been due to stabilization, as over half of the issuers with positive rating actions this year had one or more negative rating actions in 2020.

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Table 1

Global Corporate Rating Actions By Region
--Q2 2021-- --Q1 2021-- --Q4 2020-- --Q3 2020--
Region Number of upgrades Number of downgrades Downgrade ratio (%) Number of upgrades Number of downgrades Downgrade ratio (%) Number of upgrades Number of downgrades Downgrade ratio (%) Number of upgrades Number of downgrades Downgrade ratio (%)
North America 127 52 29.1 102 70 40.7 65 92 58.6 45 111 71.2
Europe 33 30 47.6 21 22 51.2 15 43 74.1 5 47 90.4
Emerging Markets 6 28 82.4 13 19 59.4 10 24 70.6 7 37 84.1
Asia-Pacific 4 12 75.0 6 6 50.0 3 9 75.0 3 17 85.0
EEMEA 1 4 80.0 1 3 75.0 3 2 40.0 3 5 62.5
Latin America 1 12 92.3 6 10 62.5 4 13 76.5 1 15 93.8
Total 166 110 39.9 136 111 44.9 90 159 63.9 57 195 77.4
Rating changes exclude entities with no rated debt. Data as of June 30, 2021. Source: S&P Global Ratings.

Table 2

Breakdown Of Rating Actions By Debt Amount Affected (Bil. $)
--Q2 2021-- --Q1 2021-- --Q4 2020-- --Q3 2020--
Region Volume of debt affected by downgrades Volume of debt affected by upgrades Volume of debt affected by downgrades Volume of debt affected by upgrades Volume of debt affected by downgrades Volume of debt affected by upgrades Volume of debt affected by downgrades Volume of debt affected by upgrades
North America 461.0 293.0 256.0 358.3 206.3 400.9 127.6 455.8
Europe 86.6 289.4 95.4 233.8 19.0 163.4 15.3 129.3
Emerging Markets 9.6 44.8 14.2 37.1 21.1 38.3 4.8 68.1
Asia-Pacific 8.4 24.5 10.4 9.8 1.4 13.8 2.0 28.6
EEMEA 0.8 4.4 0.9 8.2 3.7 1.6 2.5 23.9
Latin America 0.4 15.9 2.8 19.1 16.1 22.9 0.3 15.5
Total 557.2 627.2 365.6 629.1 246.4 602.7 147.7 653.2
Rating changes exclude entities with no rated debt. Data as of June 30, 2021. Source: S&P Global Ratings.

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Related Research

This report does not constitute a rating action.

Credit Markets Research:Nicole Serino, New York + 1 (212) 438 1396;
nicole.serino@spglobal.com
Sudeep K Kesh, New York + 1 (212) 438 7982;
sudeep.kesh@spglobal.com
Secondary Contact:Shripati Pranshu, Mumbai;
shripati.pranshu@spglobal.com

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