- U.S. corporate upgrades reached a new high in the second quarter, rising by 22% to 121, as credit quality rebounds.
- Even with credit quality showing improvement, the number of upgrades in the first half of 2021 trails the number of downgrades from the first half of 2020 by nearly 500.
- Downgrade risk is declining across all sectors, and the negative bias fell by eight percentage points for U.S. companies in the second quarter.
- Defaults fell to 11, their lowest level since the third quarter of 2018.
The number of positive rating actions for financial and nonfinancial corporate issuers rose in the second quarter of 2021, as the economic rebound fueled better-than-expected demand for most sectors, and financing conditions remained extremely favorable, with ample credit available for most issuers.
Net rating actions reached an all-time high in the second quarter, with upgrades (121) greatly outnumbering downgrades (51). Most of the upgrades were of lower-rated entities, as 58% of all upgrades were issuers rated 'B' and lower. Upgrades were led by several of the sectors hardest hit by the pandemic, and about half were of issuers that had been downgraded since the start of 2020. Furthermore, downgrades fell to the lowest number since the first quarter of 2011. Second-quarter downgrades were mostly concentrated in April and May and have slowed in recent weeks. Rating outlooks also stabilized, suggesting that the pace of downgrades will slow further.
While credit quality is improving broadly, the pace of the economic recovery is more gradual than the suddenness of its decline. There were 220 upgrades of U.S. companies in the first half of 2021, which is well below the 715 downgrades from the first half of 2020 (see chart 1). Even though economic and business conditions are improving, many sectors continue to show higher debt levels and weakened credit quality compared with the where they stood at the beginning of 2020.
Negative Bias Falls Below Its Long-Term Average
For U.S. companies overall (including both investment- and speculative-grade), the negative bias (the proportion of issuers with negative outlooks or ratings on CreditWatch with negative implications) fell by eight percentage points to 19% and is now below its long-term average of 22%. This steady decline points to a further decrease in downgrade potential and indicates the number of quarterly downgrades should continue to fall.
Speculative-grade issuers had a steeper drop in their negative bias in the second quarter than investment-grade issuers. The speculative-grade ('BB+' or lower) negative bias fell by nine percentage points to 21%, and the investment-grade ('BBB-' or higher) negative bias declined by nearly six percentage points to 15% (see charts 2 and 3). The upgrade potential for both investment- and speculative-grade issuers in the U.S. increased, as the positive bias (the proportion of issuers with positive outlooks or ratings on CreditWatch with positive implications) rose by two percentage points for each. While the positive bias is now showing steady quarterly growth over the past 12 months, it hasn't risen as much as the negative bias has decreased.
The negative bias remains highest for issuers in the lowest rating level, with 69% of issuers rated 'CCC+' or lower having a negative bias (see chart 4). With weaker credit metrics, lower-rated entities are not as well positioned to weather a business, financial, or economic shock compared with higher-rated peers. However, with robust financing conditions providing ample liquidity and the economic recovery supporting business conditions, the pace of downgrades and defaults for the lowest-rated issuers has slowed. The negative bias has fallen for issuers rated in the 'B' category, and the positive bias has increased.
In the second quarter, the most pronounced increase in upgrade potential has been for issuers rated at the low end of speculative grade: 'B-' and lower. The positive bias for issuers at this rating level rose by nearly four percentage points to 11% and is now in line with the positive bias for speculative grade overall (see chart 5).
Negative Bias Continues To Decline Across All Sectors
In consecutive quarters the negative bias declined by 1% or more in each of the 18 U.S. sectors. Outlooks on many issuers have been revised to stable from negative without being downgraded as forecasts for near-term economic growth have been revised higher (see chart 6).
The oil and gas sector's negative bias has fallen 39 percentage points in 2021, the most among all sectors. Outlooks have improved as OPEC+ supply cuts supported oil prices and as issuers have been able to bolster liquidity. The oil and gas sector's negative bias is currently 23%, slightly above its long-term average (21%). As we do not expect the price of U.S. West Texas Intermediate crude to stay far above the average break-even price for U.S. shale (near $50), speculative-grade oilfield services, exploration, and production companies remain vulnerable. We don't expect credit metrics in the oil and gas sector to broadly recover until 2022.
The retail and restaurant sector's negative bias has fallen 32 percentage points this year, the second most among all sectors. Outlooks have improved as the vaccine rollout has led to eased restrictions. The negative bias for the sector is currently 9%, well below its long-term average (27%).
Even though we expect a very strong recovery in consumer spending in 2021, we don't expect credit metrics in the discretionary retail industry to broadly recover until 2022.
Now Fewer Sectors Show Above-Average Downgrade Potential Than Pre-Pandemic
One method we use to examine downgrade propensity is by comparing the sector's current negative bias with its historical average. Just five sectors now have a negative bias above their long-term average, down from 14 in the first quarter, and lower than the total before the pandemic began (eight sectors; see charts 8-10).
The media and entertainment negative bias at 33% is the highest among all sectors, and while it has fallen 20 percentage points this year, it remains above its long-term average (27%). Outlooks have improved as ad-supported media is expected to recover to pre-2020 credit metrics this year, and as vaccinations, fiscal stimulus, and consumer savings unlock pent-up demand for leisure travel.
We expect the recovery of pre-2020 credit metrics to be uneven, with the hardest-hit industries of out-of-home entertainment and hotels not expected to recover before 2023 and even later for the cruise industry.
The aerospace and defense negative bias has fallen 14 percentage points this year, but at 31%, it is the second highest among all sectors and remains well above its long-term average (19%). The commercial aerospace industry was severely impacted by the pandemic, and we don't expect credit metrics to recover until after 2023.
We use a similar approach to gauge upgrade potential, comparing a sector's current positive bias with its long-term average. There are now seven sectors that show above-average upgrade potential, up from just three in the first quarter (see chart 10).
Upgrades Reach A New High
U.S. corporate upgrades reached a new record at 121 in the second quarter, surpassing the previous high of 103 from fourth-quarter 2013 (see chart 11). Of the upgrades, 60 were of "round trippers," or issuers that had been downgraded since the start of 2020. Most of these round trippers were upgraded from ratings of 'B-' or lower, and many happened after companies reported better-than-expected operating performance. These upgrades also included five investment-grade issuers from the chemicals, packaging, and environmental services sector, which were upgraded as the global economic rebound and the strength of demand from key end markets of housing and automotive are contributing to stronger operating performance in 2021.
The number of downgrades fell by 24% to 51 in the second quarter, with nonfinancial corporate issuers accounting for all but four of the downgrades (see chart 14). Speculative-grade downgrades fell to 40, their lowest level since the third quarter of 2013. Investment-grade downgrades dropped to 11 from 16 in the first quarter (see chart 12).
The number of speculative-grade upgrades rose by 9% to 101, reaching a new quarterly high. Investment-grade upgrades more than tripled to 20 (see chart 13).
|Second-Quarter 2021 U.S. Corporate Ratings Statistics|
|Downgrades (issuer count)||51.0||11.0||40.0||4.0||47.0|
|(Debt volume, $US Bil.)||292.3||217.5||74.8||1.2||291.1|
|Upgrades (issuer count)||121.0||20.0||101.0||7.0||114.0|
|(Debt volume, $US Bil.)||449.3||162.3||287.0||29.6||419.7|
|Total rating actions||172.0||31.0||141.0||11.0||161.0|
|High, quarter||95% 2020Q2||92% 2020Q2||95% 2020Q2||100% 2000Q3||95% 2020Q2|
|Low, quarter||30% 2021Q2||21% 2012Q2||25% 1997Q3||9% 1996Q3||29% 2021Q2|
|High, quarter||44% 2020Q2||28% 2009Q3||52% 2020Q2||45% 2009Q3||46% 2020Q2|
|Low, quarter||11% 2013Q4||9% 2013Q4||12% 2014Q2||4% 1996Q1||11% 2014Q2|
|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 1995Q1-2021Q2. See Tables 4 and 5 for details. Rating changes exclude entities with no rated debt. Data as of June 30, 2021, Source: S&P Global Ratings Research.|
83% Of Upgrades Were Of Speculative-Grade Issuers
Speculative-grade issuers accounted for 83% of the upgrades in the second quarter, and the majority of these were of issuers rated 'B-' and lower. Issuers rated 'CCC+' and lower accounted for the largest number of upgrades (33), followed by 'B-' (19), and 'B' (18).
Downgrades were also concentrated among speculative-grade ratings. Of the downgrades, 41% were issuers rated 'B-' and lower. By contrast, 22% of downgrades were of investment-grade issuers. These included one fallen angel (which is an issuer downgraded to speculative grade from investment grade): Michigan-based ProAssurance Corp. was downgraded following its acquisition of NORCAL (see chart 14). This fallen angel was outnumbered by seven rising stars (issuers upgraded to investment grade from speculative grade) in the second quarter.
Hard-Hit Sectors Lead Upgrades
Retail and restaurants and media and entertainment, two of the sectors that were hardest hit by the pandemic, led upgrades in the second quarter.
The retail and restaurants sector had the highest number of upgrades with 15, up from nine in the first quarter (see chart 15). Most of the upgraded issuers were round trippers that had been downgraded in 2020. The sector accounts for the second-most upgrades year to date.
The media and entertainment sector had the second-highest number of second-quarter upgrades with 14, down from 16 in the first quarter. All the upgrades were of speculative-grade issuers, most of which had been downgraded in 2020. The sector accounts for the most upgrades year to date.
Utilities And Consumer Products Sectors Lead Downgrades
The utilities sector had the highest number of downgrades in the second quarter with seven, down from 10 in the first quarter. These downgrades include one investment-grade issuer and six speculative-grade issuers (most of which are midstream companies). The largest issuer downgrade was Vistra Corp., an independent power company headquartered in Texas (downgraded to 'BB' from 'BB+').
The consumer products sector had the second-highest number of downgrades in the second quarter with six, down from eight in the first quarter. Downgrades included one investment-grade issuer and four speculative-grade issuers. The largest issuer downgrade was Serta Simmons Bedding LLC, which was downgrade twice (first downgraded to 'CC' from 'CCC+' and then to 'SD' from 'CC').
|U.S. Rating Actions By Sector (Q2 2021)|
|Aerospace & defense||2||4||4,726||13,746||6||18,472|
|Chemicals, packaging, & environmental services||13||1||42,259||450||14||42,709|
|Forest products & building materials||1||5||350||11,200||6||11,550|
|Homebuilders/real estate co.||8||1||15,922||22,540||9||38,462|
|Media & entertainment||14||4||36,188||6,628||18||42,816|
|Metals, mining, & steel||2||2||16,229||2,668||4||18,897|
|Oil & gas||8||4||16,318||5,335||12||21,653|
|Media and entertainment includes leisure. Utility sector includes midstream companies. Rating changes exclude entities with no rated debt. Data as of June 30, 2021. Source: S&P Global Ratings Research.|
|2016Q1-2021Q2 S&P Global Ratings Trends, U.S. Corporates|
|Defaulted Issuers||Weakest Links||Fallen Angels||Rising Stars||Potential Downgrades||Potential Upgrades|
|Data as of June 30, 2021. Source: S&P Global Ratings Research.|
Fewer Defaults In The Second Quarter As Weakest Links Fall Back To Pre-Pandemic Level
The number of defaults in the second quarter fell to 11, down from 15 in the first quarter--marking the fewest quarterly defaults since third quarter 2018.
The count of weakest links (issuers rated 'B-' and below with negative outlooks or on CreditWatch negative) fell to 191 in the second quarter from 265 in the first quarter. Weakest links are the issuers with the greatest risk of default, and the declining number points to fewer defaults.
After climbing above 425 during the heart of the pandemic, weakest links are now back below their level from the end of 2019. Similarly, the number of potential bond downgrades (issuers rated 'AAA' to 'B-' with negative rating outlooks or ratings on CreditWatch negative) has also dropped to just below the level from fourth quarter 2019.
With credit quality broadly improving across multiple sectors, we expect that the U.S. trailing-12-month speculative-grade corporate default rate will decline to 4% by March 2022, down from 6.3% as of March 2021. Several indicators suggest a lower default rate ahead: credit metrics are stabilizing, companies are benefiting from very favorable lending conditions, and a strong economic rebound is contributing to improved operating performance for many. However, the credit metrics remain broadly weaker from where they stood at the beginning of 2020. The share of issuers at the lowest rating levels remains near its record high, with just under 40% of all U.S. speculative-grade issuers rated 'B-' or lower, and we expect some sectors to endure a long recovery to pre-2020 credit metrics. However, we expect default risk to continue to be offset by the recovery in economic activity coupled with the ample liquidity available to speculative-grade issuers (see "The U.S. Speculative-Grade Corporate Default Rate Could Fall To 4% By March 2022," published May 26, 2021).
|U.S. Corporate Upgrades (Second Quarter 2021)|
|Peraton Corp.||U.S.||B+||B||May 11, 2021||Aerospace & Defense|
|Propulsion Acquisition LLC||U.S.||B-||CCC+||June 21, 2021||Aerospace & Defense|
|GC EOS Buyer Inc||U.S.||B-||CCC+||April 23, 2021||Automotive|
|Goodyear Tire & Rubber Co. (The)||U.S.||BB-||B+||May 13, 2021||Automotive|
|Penske Automotive Group Inc.||U.S.||BB+||BB||May 7, 2021||Automotive|
|Tenneco Inc.||U.S.||B+||B||May 12, 2021||Automotive|
|ASP Unifrax Holdings Inc.,||U.S.||B-||CCC+||May 28, 2021||Capital Goods|
|Generac Power Systems Inc.||U.S.||BB+||BB||June 22, 2021||Capital Goods|
|Granite US Holdings Corp||U.S.||B||B-||June 11, 2021||Capital Goods|
|Hyster-Yale Materials Handling Inc.||U.S.||B+||B||May 13, 2021||Capital Goods|
|Titan International Inc.||U.S.||B-||CCC+||April 7, 2021||Capital Goods|
|Welbilt Inc.,||U.S.||B-||CCC+||May 6, 2021||Capital Goods|
|Albemarle Corp.||U.S.||BBB||BBB-||April 29, 2021||Chemicals, Packaging & Environmental Services|
|Chevron Phillips Chemical Co. LLC (Chevron Corp.)||U.S.||A-||BBB+||May 26, 2021||Chemicals, Packaging & Environmental Services|
|CMC Materials Inc.||U.S.||BB+||BB||April 2, 2021||Chemicals, Packaging & Environmental Services|
|CPG Intermediate LLC||U.S.||B||B-||May 5, 2021||Chemicals, Packaging & Environmental Services|
|Dow Chemical Co. (The) (Dow Inc.)||U.S.||BBB||BBB-||June 10, 2021||Chemicals, Packaging & Environmental Services|
|Eastman Chemical Co.||U.S.||BBB||BBB-||April 2, 2021||Chemicals, Packaging & Environmental Services|
|Element Solutions Inc.||U.S.||BB||BB-||April 22, 2021||Chemicals, Packaging & Environmental Services|
|Koppers Holdings Inc.||U.S.||B+||B||April 8, 2021||Chemicals, Packaging & Environmental Services|
|LSB Industries Inc.||U.S.||CCC+||CCC||May 27, 2021||Chemicals, Packaging & Environmental Services|
|Olin Corp.||U.S.||BB||BB-||April 6, 2021||Chemicals, Packaging & Environmental Services|
|PMHC II Inc.,||U.S.||B-||CCC+||May 6, 2021||Chemicals, Packaging & Environmental Services|
|Univar Solutions Inc.||U.S.||BB+||BB||April 9, 2021||Chemicals, Packaging & Environmental Services|
|Westlake Chemical Corp.||U.S.||BBB||BBB-||June 30, 2021||Chemicals, Packaging & Environmental Services|
|Allied Universal Topco LLC||U.S.||B||B-||April 22, 2021||Consumer Products|
|Blue Ribbon Intermediate Holdings LLC||U.S.||B-||CCC||April 16, 2021||Consumer Products|
|Del Monte Foods Inc.,||U.S.||B-||CCC+||April 9, 2021||Consumer Products|
|Hayward Holdings Inc.,||U.S.||BB-||B+||May 10, 2021||Consumer Products|
|Innovative Water Care Global Corp.||U.S.||B-||CCC+||June 30, 2021||Consumer Products|
|KNB Holdings Corp.||U.S.||CCC+||CCC-||May 10, 2021||Consumer Products|
|KNEL Acquisition LLC||U.S.||B||B-||June 15, 2021||Consumer Products|
|Kontoor Brands Inc.,||U.S.||BB-||B+||May 10, 2021||Consumer Products|
|Latham Pool Products Inc.,||U.S.||B+||B||April 26, 2021||Consumer Products|
|NSA International, LLC||U.S.||B-||CCC||May 11, 2021||Consumer Products|
|Serta Simmons Bedding LLC||U.S.||CCC||CCC-||June 30, 2021||Consumer Products|
|StoneMor Inc.||U.S.||CCC+||CCC||May 27, 2021||Consumer Products|
|Vista Outdoor Inc.||U.S.||BB-||B+||June 14, 2021||Consumer Products|
|BBVA USA Bancshares Inc (Banco Bilbao Vizcaya Argentaria, S.A.)||U.S.||A-||BBB+||June 2, 2021||Financial Institutions|
|Greystar Real Estate Partners, LLC||U.S.||BB-||B+||May 27, 2021||Financial Institutions|
|OFG Bancorp||U.S.||B+||B||April 21, 2021||Financial Institutions|
|Oppenheimer Holdings Inc.||U.S.||BB-||B+||June 17, 2021||Financial Institutions|
|PayPal Holdings Inc.,||U.S.||A-||BBB+||June 3, 2021||Financial Institutions|
|TCF Financial Corp||U.S.||BBB+||BBB-||June 9, 2021||Financial Institutions|
|Eagle Materials Inc.||U.S.||BBB||BBB-||May 24, 2021||Forest Products & Building Materials|
|Abbott Laboratories||U.S.||A+||A||May 19, 2021||Health Care|
|Albany Molecular Research Inc.||U.S.||B||B-||April 16, 2021||Health Care|
|Aveanna Healthcare LLC (Aveanna Healthcare Holdings Inc.)||U.S.||B-||CCC+||May 3, 2021||Health Care|
|Boston Scientific Corp.||U.S.||BBB||BBB-||May 27, 2021||Health Care|
|Community Health Systems Inc.||U.S.||B-||CCC+||June 17, 2021||Health Care|
|Envision Healthcare Corp. (Envision Healthcare Holdings Inc.)||U.S.||CCC+||CCC||June 3, 2021||Health Care|
|Gentiva Health Services Inc.||U.S.||B+||B||April 7, 2021||Health Care|
|Heartland Dental, LLC (Hadrian Merger Sub Inc.)||U.S.||B-||CCC+||June 3, 2021||Health Care|
|Premier Dental Services Inc.||U.S.||B-||CCC+||June 3, 2021||Health Care|
|Primary Care (ITC) Intermediate Holdings LLC (Cano Health Inc.,)||U.S.||B||B-||June 18, 2021||Health Care|
|YI Group Holdings, LLC||U.S.||B-||CCC+||May 4, 2021||Health Care|
|Avaya Holdings Corp.||U.S.||B+||B||June 2, 2021||High Technology|
|Blackhawk Network Holdings Inc.,||U.S.||B||B-||May 11, 2021||High Technology|
|CDW Corp.||U.S.||BBB-||BB+||May 26, 2021||High Technology|
|Cohu Inc.,||U.S.||B+||B-||April 26, 2021||High Technology|
|Gigamon Inc. (Ginsberg HoldCo Inc.)||U.S.||B||B-||June 11, 2021||High Technology|
|NAB Holdings LLC||U.S.||B||B-||June 14, 2021||High Technology|
|Qorvo Inc.,||U.S.||BBB-||BB+||April 22, 2021||High Technology|
|Salesforce.com Inc.||U.S.||A+||A||June 29, 2021||High Technology|
|Unisys Corp.||U.S.||B+||B||June 28, 2021||High Technology|
|VeriSign Inc.||U.S.||BBB||BBB-||April 16, 2021||High Technology|
|Beazer Homes USA Inc.||U.S.||B||B-||June 10, 2021||Homebuilders/Real Estate Co.|
|Century Communities Inc.,||U.S.||BB-||B+||April 1, 2021||Homebuilders/Real Estate Co.|
|Lennar Corp.||U.S.||BBB-||BB+||June 9, 2021||Homebuilders/Real Estate Co.|
|MDC Holdings Inc.||U.S.||BBB-||BB+||April 9, 2021||Homebuilders/Real Estate Co.|
|Physicians Realty Trust||U.S.||BBB||BBB-||May 13, 2021||Homebuilders/Real Estate Co.|
|PulteGroup Inc.,||U.S.||BBB-||BB+||April 5, 2021||Homebuilders/Real Estate Co.|
|QTS Realty Trust Inc.,||U.S.||BB||BB-||April 1, 2021||Homebuilders/Real Estate Co.|
|Shimao Group Holdings Ltd.||Cayman Islands||BBB-||BB+||April 8, 2021||Homebuilders/Real Estate Co.|
|Athene Holding Ltd.||Bermuda||A-||BBB+||May 18, 2021||Insurance|
|Agiliti Inc.||U.S.||B+||B||April 30, 2021||Media & Entertainment|
|Airxcel Inc.||U.S.||B||B-||April 21, 2021||Media & Entertainment|
|AMC Entertainment Holdings Inc.||U.S.||CCC+||CCC-||June 10, 2021||Media & Entertainment|
|Bioplan USA Inc.,||U.S.||CCC+||CCC||April 1, 2021||Media & Entertainment|
|Cars.com Inc.||U.S.||B+||B||June 11, 2021||Media & Entertainment|
|Endeavor Operating Co., LLC||U.S.||B||CCC+||April 29, 2021||Media & Entertainment|
|Enterprise Development Authority||U.S.||B||B-||April 1, 2021||Media & Entertainment|
|Everi Payments Inc. (Everi Holdings Inc.)||U.S.||B+||B||June 21, 2021||Media & Entertainment|
|Gartner Inc.||U.S.||BB+||BB||June 3, 2021||Media & Entertainment|
|Nexstar Media Group Inc.,||U.S.||BB||BB-||April 12, 2021||Media & Entertainment|
|Peninsula Pacific Entertainment LLC||U.S.||B-||CCC+||April 7, 2021||Media & Entertainment|
|TEGNA Inc.||U.S.||BB||BB-||June 10, 2021||Media & Entertainment|
|TopBuild Corp.||U.S.||BB+||BB||May 24, 2021||Media & Entertainment|
|Winnebago Industries Inc.,||U.S.||BB-||B+||April 1, 2021||Media & Entertainment|
|Cleveland-Cliffs Inc.||U.S.||B||B-||June 22, 2021||Metals, Mining & Steel|
|Freeport-McMoRan Inc.||U.S.||BB+||BB||April 2, 2021||Metals, Mining & Steel|
|Antero Resources Corp.||U.S.||BB-||B||May 17, 2021||Oil & Gas|
|Ascent Resources Utica Holdings, LLC||U.S.||B||B-||June 9, 2021||Oil & Gas|
|Centennial Resource Development Inc.,||U.S.||B-||CCC+||April 23, 2021||Oil & Gas|
|Double Eagle III Midco 1 LLC (DoublePoint Energy, LLC)||U.S.||BBB||B-||May 6, 2021||Oil & Gas|
|Matador Resources Co.||U.S.||B||B-||June 28, 2021||Oil & Gas|
|Moss Creek Resources Holdings Inc.,||U.S.||B-||CCC+||April 16, 2021||Oil & Gas|
|Profrac Services, LLC||U.S.||CCC+||CCC||April 27, 2021||Oil & Gas|
|Woodford Express, LLC||U.S.||B-||CCC+||May 18, 2021||Oil & Gas|
|Albertsons Cos. Inc.,||U.S.||BB||BB-||June 9, 2021||Retail/Restaurants|
|Amazon.com Inc.||U.S.||AA||AA-||June 10, 2021||Retail/Restaurants|
|Best Buy Co. Inc.||U.S.||BBB+||BBB||May 20, 2021||Retail/Restaurants|
|Brinker International Inc.||U.S.||BB-||B+||May 18, 2021||Retail/Restaurants|
|Burlington Stores Inc.||U.S.||BB+||BB||June 9, 2021||Retail/Restaurants|
|Conn's Inc.||U.S.||B||B-||April 16, 2021||Retail/Restaurants|
|Cooper's Hawk Intermediate Holding, LLC||U.S.||B-||CCC+||May 25, 2021||Retail/Restaurants|
|Fogo De Chao Inc.,||U.S.||B-||CCC+||April 9, 2021||Retail/Restaurants|
|JOANN Inc.||U.S.||B||B-||April 27, 2021||Retail/Restaurants|
|Main Event Entertainment Inc., (Ardent Leisure Ltd.)||U.S.||B-||CCC+||June 25, 2021||Retail/Restaurants|
|Miller's Ale House Inc.,||U.S.||CCC+||CCC||April 13, 2021||Retail/Restaurants|
|New Academy Holding Co. LLC||U.S.||B+||B||May 19, 2021||Retail/Restaurants|
|SEG Holding, LLC (BI-LO Holding Finance, LLC)||U.S.||B+||B||April 7, 2021||Retail/Restaurants|
|Wendy's Co. (The)||U.S.||B+||B||May 26, 2021||Retail/Restaurants|
|Wok Holdings Inc.,||U.S.||B-||CCC+||May 27, 2021||Retail/Restaurants|
|Altice USA Inc.,||U.S.||BB||BB-||April 22, 2021||Telecommunications|
|Equinix Inc.||U.S.||BBB||BBB-||April 28, 2021||Telecommunications|
|Air Transport Services Group Inc.,||U.S.||BB+||BB||April 7, 2021||Transportation|
|Allegiant Travel Co.||U.S.||B+||B||April 15, 2021||Transportation|
|Burlington Northern Santa Fe LLC (Berkshire Hathaway Inc.)||U.S.||AA-||A+||May 17, 2021||Transportation|
|Antero Midstream Partners LP (Antero Resources Corp.)||U.S.||BB-||B||May 19, 2021||Utility|
|Northern Border Pipeline Co.||U.S.||A-||BBB+||April 13, 2021||Utility|
|Rating changes exclude sovereign and entities with no rated debt. Data as of June 30, 2021. Source: S&P Global Ratings Research.|
|U.S. Corporate Downgrades (Second Quarter 2021)|
|General Dynamics Corp.||U.S.||A-||A||April 29, 2021||Aerospace & Defense|
|New Constellis Borrower, LLC (New Constellis Holdings Inc.)||U.S.||CCC+||B-||May 6, 2021||Aerospace & Defense|
|Perspecta Inc. (Peraton Corp.)||U.S.||B+||BB||May 12, 2021||Aerospace & Defense|
|Salient CRGT Inc.,||U.S.||CCC||B-||June 17, 2021||Aerospace & Defense|
|Columbus McKinnon Corp.||U.S.||B+||BB-||May 5, 2021||Capital Goods|
|Cornerstone Chemical Co.||U.S.||CCC+||B-||April 16, 2021||Chemicals, Packaging & Environmental Services|
|Callaway Golf Co.||U.S.||B||B+||April 6, 2021||Consumer Products|
|GEO Group (The) Inc.||U.S.||CCC+||B||May 25, 2021||Consumer Products|
|Global IID Parent LLC||U.S.||B-||B||May 20, 2021||Consumer Products|
|Li & Fung Ltd.||Bermuda||BBB-||BBB||April 12, 2021||Consumer Products|
|Serta Simmons Bedding LLC||U.S.||CC||CCC+||April 5, 2021||Consumer Products|
|Serta Simmons Bedding LLC||U.S.||SD||CC||April 19, 2021||Consumer Products|
|CNG Holdings Inc.,||U.S.||B-||B||May 19, 2021||Financial Institutions|
|GreenSky Holdings, LLC||U.S.||B||B+||April 2, 2021||Financial Institutions|
|ACProducts Inc., (Victors Intermediate Holding II Corp.)||U.S.||B-||B||April 27, 2021||Forest Products & Building Materials|
|LBM Acquisition, LLC (BCPE Ulysses Intermediate Inc.,)||U.S.||B-||B||June 21, 2021||Forest Products & Building Materials|
|Park River Holdings Inc.,||U.S.||B-||B||May 25, 2021||Forest Products & Building Materials|
|Sabre Industries Inc. (Tiger Acquisition, LLC)||U.S.||B||B+||May 11, 2021||Forest Products & Building Materials|
|SRS Distribution Inc.,||U.S.||B-||B||May 18, 2021||Forest Products & Building Materials|
|AmerisourceBergen Corp.||U.S.||BBB+||A-||June 4, 2021||Health Care|
|CDRH Parent Inc.,||U.S.||CC||CCC-||April 7, 2021||Health Care|
|CDRH Parent Inc.,||U.S.||D||CC||May 14, 2021||Health Care|
|Medical Depot Holdings Inc.,||U.S.||SD||CCC+||April 19, 2021||Health Care|
|Merck & Co. Inc.||U.S.||A+||AA-||June 3, 2021||Health Care|
|International Business Machines Corp.||U.S.||A-||A||May 6, 2021||High Technology|
|Oracle Corp.||U.S.||BBB+||A||June 22, 2021||High Technology|
|Rocket Software Inc.,||U.S.||B-||B||May 12, 2021||High Technology|
|SolarWinds Holdings Inc.||U.S.||B||B+||April 28, 2021||High Technology|
|Simon Property Group, Inc||U.S.||A-||A||May 19, 2021||Homebuilders/Real Estate Co.|
|ProAssurance Corp.||U.S.||BB||BBB-||May 6, 2021||Insurance|
|RLI Corp.||U.S.||BBB||BBB+||April 27, 2021||Insurance|
|Automatic Data Processing Inc.||U.S.||AA-||AA||May 11, 2021||Media & Entertainment|
|CareerBuilder, LLC||U.S.||B-||B||June 10, 2021||Media & Entertainment|
|Carlson Travel Inc||U.S.||D||CCC||June 23, 2021||Media & Entertainment|
|Vericast Corp.||U.S.||CCC||CCC+||May 26, 2021||Media & Entertainment|
|Kaiser Aluminum Corp.||U.S.||BB||BB+||April 1, 2021||Metals, Mining & Steel|
|Peabody Energy Corp.||U.S.||SD||CCC+||June 3, 2021||Metals, Mining & Steel|
|Basic Energy Services Inc.||U.S.||D||CCC-||April 16, 2021||Oil & Gas|
|BEP Ulterra Holdings Inc.,||U.S.||CCC+||B-||April 8, 2021||Oil & Gas|
|ION Geophysical Corp.||U.S.||SD||CC||April 14, 2021||Oil & Gas|
|RS Ivy Holdco Inc.,||U.S.||B+||BB-||June 15, 2021||Oil & Gas|
|IPC Corp.||U.S.||CCC-||CCC||April 16, 2021||Telecommunications|
|Premiere Global Services Inc.||U.S.||CCC-||CCC+||May 27, 2021||Telecommunications|
|Overseas Shipholding Group Inc.||U.S.||CCC+||B-||May 11, 2021||Transportation|
|Epic Crude Services, LP||U.S.||CCC+||B-||April 1, 2021||Utility|
|Kentucky Power Co. (American Electric Power Co. Inc.)||U.S.||BBB+||A-||April 28, 2021||Utility|
|Ruby Pipeline LLC||U.S.||CCC||B-||April 9, 2021||Utility|
|Southeast Supply Header, LLC||U.S.||BB-||BB+||June 17, 2021||Utility|
|Summit Midstream Partners, LP||U.S.||SD||CC||April 15, 2021||Utility|
|Vistra Corp.||U.S.||BB||BB+||April 29, 2021||Utility|
|WaterBridge Operating LLC (WaterBridge Resources, LLC)||U.S.||CCC+||B-||May 12, 2021||Utility|
|Rating changes exclude sovereign and entities with no rated debt. Data as of June 30, 2021. Source: S&P Global Ratings Research.|
- Global Credit Conditions Q3 2021: Reopening, Reflation, Reset, June 30, 2021
- Economic Outlook U.S. Q3 2021: Sun, Sun, Sun, Here It Comes, June 24, 2021
- S&P Global Ratings Raises Short-Term Oil And Gas Price Assumptions On Improving Market Conditions, June 16, 2021
- U.S. Real-Time Data: Job And Mobility Trends Improve As Rising Prices Dampen Consumer Enthusiasm, June 11, 2021
- COVID-19 Heat Map: Pent-Up Demand And Supply Shortages Further Improve Recovery Prospects For Credit Quality, June 8, 2021
- The U.S. Speculative-Grade Corporate Default Rate Could Fall To 4% By March 2022, May 26, 2021
This report does not constitute a rating action.
|Ratings Performance Analytics:||Nick W Kraemer, FRM, New York + 1 (212) 438 1698;|
|Evan M Gunter, New York + 1 (212) 438 6412;|
|Jon Palmer, CFA, New York;|
|Research Contributor:||Lyndon Fernandes, CRISIL Global Analytical Center, an S&P affiliate, Mumbai|
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