(Editor's Note: Our "Risky Credits" series focuses on U.S. and Canadian 'CCC' category rated corporate issuers, as well as issuers rated 'B-' with negative outlooks or on CreditWatch negative, because most defaults are of issuers in these categories.)
Key Takeaways
- The number of 'CCC+' and below rated corporate issuers increased by over 15% in 2022 to 161 while total debt outstanding nearly doubled to $255 billion.
- High technology and telecom led with the greatest increase in 'CCC+' and below rated debt in 2022, to $39.6 billion and $12.5 billion, respectively.
- Since the negative bias for both 'B-', and 'CCC+' and below rose in 2022, we expect the number of 'CCC+' and below rated issuers, as well as defaults, to increase in 2023.
Key Expectations For 2023
The number of issuers rated 'CCC+' and below jumped by nearly 15% since December 2021, amounting to an additional $255 billion in debt outstanding. Higher-for-longer inflation and tighter financing conditions are weighing on lower-rated borrowers.
Ratings momentum for 'CCC+' and below rated issuers in North America did a 180 last year--turning negative. Much of this can be attributed to an increase in issuers downgraded to 'CCC+' and below in the second half of 2022. While the number of downgrades to 'CCC+' and below rose to 86 in 2022, the number of upgrades shrank dramatically to 34. This compares with 27 downgrades and 82 upgrades in 2021 (see chart 2).
Speculative-grade rating distribution has turned more negative heading in 2023 as rating trends signal further credit deterioration (see chart 3). The percentage of issuers rated 'B-' with negative outlooks or on CreditWatch negative increased to 15% as of December 2022 from 9% in December 2021, while issuers rated 'CCC+' and below with negative outlooks rose to 76% from 61% in the same period. We expect the population of issuers rated 'CCC+' and below to continue to climb in the coming months.
We expect the number of defaults to increase in 2023 as a U.S. recession looms. S&P Global economists forecast a U.S. recession is likely in 2023 as inflation remains high and floating-rate borrowing costs continue to rise. Defaults in the U.S. totaled 36 in 2022, and we believe there will be an uptick in 2023. We forecast the U.S. trailing-12-month speculative-grade corporate default rate will reach 3.75% by September 2023, up from 1.7% in December 2022 but still lower than the long-term average of 4.1% (see "The U.S. Speculative-Grade Corporate Default Rate Could Reach 3.75% By September 2023," Nov. 21, 2022).
Chart 1
Chart 2
Chart 3
High tech led with the greatest year-over-year increase in 'CCC+' and below rated debt in 2022, to $39.6 billion. The increase followed a number of rating actions in the second half of 2022 as companies are less well-positioned to navigate macroeconomic headwinds and are already being affected by much higher debt financing costs (see "U.S. Tech Bracing For The Credit Storm: Ripples Now With A Chance Of Bigger Waves," Dec. 6, 2022).
Chart 4
CLO credits showed marginal deterioration in the second half of 2022. U.S. corporate rating actions were on a positive trajectory for the first half of 2022, but they trended more negative in the second half of the year as economic headwinds increased. As a result, the trend of U.S. collateralized loan obligation (CLO) credit metrics gradually improving earlier in the year reversed course, and they started to see modest deterioration.
The average broadly syndicated loan CLO 'CCC' bucket started 2022 at 4.94% and reached a low point of 4.00% at the start of August. It then reversed course and began creeping up, to end the year at 5.23%. Most of the credit metrics in table 1 ended the year in a slightly worse position than where they started. The exceptions are junior overcollateralization (O/C) test cushions and a gain in the par balance of the portfolios during 2022, both of which benefited from managers trading when loan prices were below 95 for much of the latter part of the year.
Table 1
CLO BSL Index Metrics (CLO Insights 2022 U.S. BSL Index) | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
(%) | 'B-' bucket | 'CCC' bucket | Nonperforming bucket | CreditWatch neg | Outlook negative | |||||||
Jan-22 | 26.41 | 4.94 | 0.17 | 0.88 | 12.33 | |||||||
Feb-22 | 27.16 | 4.27 | 0.37 | 0.28 | 11.94 | |||||||
Mar-22 | 27.09 | 4.26 | 0.39 | 0.11 | 11.35 | |||||||
Apr-22 | 27.44 | 4.17 | 0.13 | 1.06 | 10.86 | |||||||
May-22 | 27.76 | 4.26 | 0.14 | 1.20 | 9.83 | |||||||
Jun-22 | 27.70 | 4.14 | 0.20 | 1.27 | 10.46 | |||||||
Jul-22 | 28.59 | 4.01 | 0.35 | 1.35 | 11.08 | |||||||
Aug-22 | 28.70 | 4.00 | 0.34 | 1.46 | 11.53 | |||||||
Sep-22 | 29.00 | 4.21 | 0.59 | 1.03 | 12.20 | |||||||
Oct-22 | 28.85 | 4.40 | 0.50 | 1.16 | 13.36 | |||||||
Nov-22 | 28.85 | 5.02 | 0.40 | 0.59 | 14.46 | |||||||
Dec-22 | 29.50 | 4.95 | 0.34 | 0.32 | 14.62 | |||||||
BSL CLO--Broadly syndicated loan collateralized loan obligation. SPWARF--S&P Global Ratings' weighted average rating factor. O/C--Overcollateralization. |
Aerospace and defense, high tech, and media and entertainment could be most exposed to a cyclical downturn. The other highly cyclical sectors with elevated leverage--consumer products, business and consumer services, and capital goods--could see more top-line and margin pressure in early 2023. Real estate leads with the highest leverage, but the exposure is limited as there is just one issuer rated 'CCC+' and below.
Chart 5
Table 2
Downgrades To 'CCC' Category In 2022 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Issuer | Country | Sector | Rating to | Rating from | Debt amount (mil. US$) | |||||||||
8/1/2022 |
Bausch Health Cos. Inc. |
Canada | Health care | CCC+ | B | 44,402 | ||||||||
10/14/2022 |
Finastra Ltd. |
Cayman Islands | High technology | CCC+ | B- | 34,432 | ||||||||
12/15/2022 |
Radiate Holdco LLC |
U.S. | Telecommunications | CCC+ | B | 9,940 | ||||||||
10/28/2022 |
Team Health Holdings Inc. |
U.S. | Health care | CCC+ | B- | 9,849 | ||||||||
11/23/2022 |
NGL Energy Partners L.P. |
U.S. | Utility | CCC+ | B- | 7,300 | ||||||||
12/16/2022 |
Telesat Canada (Telesat Holdings Inc.) |
Canada | Telecommunications | CCC+ | B | 6,717 | ||||||||
4/14/2022 |
Talen Energy Supply LLC (Talen Energy Corporation) |
U.S. | Utility | CCC | B- | 6,329 | ||||||||
5/3/2022 | Intrado Corp. | U.S. | Telecommunications | CCC+ | B- | 5,407 | ||||||||
3/10/2022 |
VEON Ltd. |
Bermuda | Telecommunications | CCC+ | BB+ | 5,306 | ||||||||
8/24/2022 |
Artera Services LLC |
U.S. | Capital goods | CCC+ | B- | 3,952 | ||||||||
9/12/2022 |
Brand Industrial Services Inc. |
U.S. | Capital goods | CCC+ | B- | 3,825 | ||||||||
12/8/2022 |
New Insight Holdings Inc. |
U.S. | Media & entertainment | CCC+ | B- | 3,675 | ||||||||
10/7/2022 |
Photo Holdings LLC |
U.S. | Media & entertainment | CCC | B- | 3,290 | ||||||||
5/11/2022 |
Diebold Nixdorf Inc. |
U.S. | High technology | CCC+ | B- | 3,207 | ||||||||
3/31/2022 |
Monitronics International Inc. |
U.S. | Media & entertainment | CCC+ | B- | 3,123 | ||||||||
7/29/2022 |
Avaya Holdings Corp. |
U.S. | High technology | CCC | B- | 2,943 | ||||||||
8/12/2022 |
Party City Holdings Inc. (PC Nextco Holdings LLC) |
U.S. | Retail/restaurants | CCC+ | B- | 2,923 | ||||||||
10/19/2022 |
PECF USS Intermediate Holding III Corp. |
U.S. | Chemicals, packaging, & environmental services | CCC+ | B- | 2,550 | ||||||||
9/12/2022 |
U.S. Renal Care Inc. |
U.S. | Health care | CCC+ | B- | 2,330 | ||||||||
5/19/2022 |
Rite Aid Corp. |
U.S. | Retail/restaurants | CCC+ | B- | 2,269 | ||||||||
11/28/2022 |
FXI Holdings Inc. |
U.S. | Chemicals, packaging, & environmental services | CCC+ | B- | 2,075 | ||||||||
11/17/2022 |
Air Methods Corp. |
U.S. | Health care | CCC | B- | 1,810 | ||||||||
8/23/2022 |
Audacy Inc. |
U.S. | Media & entertainment | CCC+ | B- | 1,780 | ||||||||
12/13/2022 |
Aventiv Technologies LLC |
U.S. | Telecommunications | CCC+ | B- | 1,665 | ||||||||
9/23/2022 |
Wheel Pros Inc. |
U.S. | Automotive | CCC+ | B- | 1,540 | ||||||||
8/22/2022 |
Bed Bath & Beyond Inc. |
U.S. | Retail/restaurants | CCC | B- | 1,500 | ||||||||
7/29/2022 |
Weber Inc. |
U.S. | Consumer products | CCC+ | B | 1,500 | ||||||||
3/11/2022 |
Logan Group Co. Ltd. |
Cayman Islands | Homebuilders/real estate co. | CCC- | B- | 1,280 | ||||||||
9/29/2022 |
National CineMedia Inc. |
U.S. | Media & entertainment | CCC | B- | 1,220 | ||||||||
9/19/2022 |
Five Point Holdings LLC |
U.S. | Homebuilders/real estate co. | CCC+ | B- | 1,200 | ||||||||
2/25/2022 |
Cooper-Standard Holdings Inc. |
U.S. | Automotive | CCC+ | B- | 990 | ||||||||
5/26/2022 |
TecoStar Holdings Inc. |
U.S. | Health care | CCC+ | B- | 950 | ||||||||
5/3/2022 |
Carestream Health Inc. |
U.S. | Health care | CC | B- | 948 | ||||||||
12/21/2022 |
Cyxtera Technologies Inc. |
U.S. | Telecommunications | CCC | B- | 915 | ||||||||
11/7/2022 |
Mongolian Mining Corp. |
Cayman Islands | Metals, mining, & steel | CC | B- | 880 | ||||||||
5/25/2022 |
Carrols Restaurant Group Inc. |
U.S. | Retail/restaurants | CCC+ | B- | 800 | ||||||||
12/20/2022 |
Centerfield Media Parent Inc. (Millennium Top1 Corporation) |
U.S. | Media & entertainment | CCC+ | B | 785 | ||||||||
2/25/2022 |
8th Avenue Food & Provisions Inc. |
U.S. | Consumer products | CCC+ | B- | 750 | ||||||||
6/17/2022 |
Canopy Growth Corp. |
Canada | Consumer products | CCC | B- | 750 | ||||||||
10/19/2022 |
Quincy Health LLC |
U.S. | Health care | CCC | B- | 732 | ||||||||
12/13/2022 |
Werner FinCo L.P. (New Werner Holding Co. Inc.) |
U.S. | Forest Products & Building Materials | CCC+ | B- | 625 | ||||||||
7/18/2022 |
IXS Holdings Inc. |
U.S. | Automotive | CCC+ | B- | 620 | ||||||||
12/16/2022 |
Rising Tide Holdings Inc. |
U.S. | Retail/restaurants | CCC | B- | 575 | ||||||||
9/30/2022 |
Lucky Bucks LLC |
U.S. | Media & entertainment | CCC | B | 555 | ||||||||
12/21/2022 |
Greenway Health LLC |
U.S. | Health care | CCC+ | B- | 530 | ||||||||
10/20/2022 |
Victory Buyer LLC |
U.S. | Capital goods | CCC+ | B- | 525 | ||||||||
11/17/2022 |
FR BR Holdings LLC |
U.S. | Utility | CCC+ | B- | 516 | ||||||||
8/17/2022 |
Traeger Inc. |
U.S. | Consumer products | CCC+ | B | 510 | ||||||||
12/19/2022 |
Gopher Resource LLC (ECP Gopher Holdings L.P.) |
U.S. | Metals, mining, & steel | CCC+ | B- | 510 | ||||||||
10/20/2022 |
China SCE Group Holdings Ltd. |
Cayman Islands | Homebuilders/real estate co. | CCC+ | B- | 500 | ||||||||
11/16/2022 |
Loyalty Ventures Inc. |
U.S. | Media & entertainment | CCC+ | B- | 500 | ||||||||
10/26/2022 |
Glatfelter Corp. |
U.S. | Forest products & building materials | CCC+ | B+ | 500 | ||||||||
6/8/2022 |
P&L Development Holdings LLC |
U.S. | Consumer products | CCC+ | B- | 465 | ||||||||
4/27/2022 |
Phoenix Services International LLC |
U.S. | Metals, mining, & steel | CCC+ | B | 465 | ||||||||
4/14/2022 |
NSA International LLC |
U.S. | Consumer products | CCC | B- | 450 | ||||||||
10/21/2022 |
IAMGOLD Corp. |
Canada | Metals, mining, & steel | CCC+ | B- | 450 | ||||||||
12/16/2022 |
Instant Brands Holdings Inc. |
U.S. | Consumer products | CCC+ | B- | 450 | ||||||||
2/11/2022 |
INW Manufacturing LLC |
U.S. | Consumer products | CCC+ | B- | 440 | ||||||||
1/31/2022 |
Halo Buyer Inc. |
U.S. | Consumer products | CCC+ | B- | 440 | ||||||||
4/14/2022 |
CoolSys Inc. |
U.S. | Consumer products | CCC+ | B- | 440 | ||||||||
6/3/2022 |
CareerBuilder LLC |
U.S. | Media & entertainment | CCC | B- | 415 | ||||||||
3/22/2022 |
PlayPower Holdings Inc. |
U.S. | Media & entertainment | CCC+ | B- | 400 | ||||||||
12/8/2022 |
GPS Hospitality Holding Co. LLC |
U.S. | Retail/restaurants | CCC+ | B- | 400 | ||||||||
11/21/2022 |
Power Stop LLC |
U.S. | Automotive | CCC+ | B- | 395 | ||||||||
9/2/2022 |
Fly Leasing Ltd. |
Bermuda | Transportation | CCC- | B- | 391 | ||||||||
8/19/2022 |
QualTek LLC |
U.S. | Capital goods | CCC+ | B- | 380 | ||||||||
3/15/2022 |
The Cleaver-Brooks Co. Inc. |
U.S. | Capital goods | CCC | B- | 375 | ||||||||
12/23/2022 |
Stitch Acquisition Corp. |
U.S. | Consumer products | CCC | B- | 370 | ||||||||
9/16/2022 |
Blue Ribbon, LLC (Blue Ribbon Intermediate Holdings LLC) |
U.S. | Consumer products | CCC+ | B- | 368 | ||||||||
2/9/2022 |
Lannett Co. Inc. |
U.S. | Health care | CCC+ | B- | 350 | ||||||||
5/12/2022 |
pH Beauty Holdings I Inc. |
U.S. | Consumer products | CCC+ | B- | 340 | ||||||||
2/11/2022 |
Moran Foods LLC (SAL Acquisition Corp.) |
U.S. | Retail/restaurants | CCC+ | B- | 334 | ||||||||
4/1/2022 |
CNG Holdings Inc. |
U.S. | Financial institutions | CCC+ | B- | 310 | ||||||||
11/4/2022 |
Spanish Broadcasting System Inc. |
U.S. | Media & entertainment | CCC+ | B- | 310 | ||||||||
11/9/2022 |
Beasley Broadcast Group Inc. |
U.S. | Media & entertainment | CCC+ | B- | 300 | ||||||||
10/21/2022 |
Casa Systems Inc. |
U.S. | High technology | CCC+ | B- | 300 | ||||||||
3/29/2022 |
Skillz Inc. |
U.S. | Media & entertainment | CCC+ | B- | 300 | ||||||||
3/18/2022 |
JHW Alphia Holdings Inc. |
U.S. | Consumer products | CCC+ | B- | 285 | ||||||||
8/26/2022 |
Sierra Enterprises LLC |
U.S. | Consumer products | CCC+ | B- | 282 | ||||||||
6/23/2022 | Vida Capital Inc. | U.S. | Financial institutions | CCC | B- | 275 | ||||||||
2/7/2022 |
Data Axle Inc. |
U.S. | Media & entertainment | CCC | B- | 250 | ||||||||
9/9/2022 |
UC Holdings Inc. (Chassix Holdings Inc.) |
U.S. | Automotive | CCC+ | B- | 225 | ||||||||
9/12/2022 |
Wahoo Fitness Acquisition LLC |
U.S. | Consumer products | CCC | B- | 225 | ||||||||
12/7/2022 |
Tacora Resources Inc. |
Canada | Metals, mining, & steel | CCC+ | B- | 225 | ||||||||
12/14/2022 |
Digital Media Solutions Inc. |
U.S. | Media & entertainment | CCC+ | B- | 225 | ||||||||
8/19/2022 |
Array Midco Corp. |
Canada | Consumer products | CCC+ | B- | 27 | ||||||||
Data as of Dec. 31, 2022. Source: S&P Global Credit Research & Insights. |
Table 3
Upgrades From 'CCC' Category In 2022 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Issuer | Country | Sector | Rating to | Rating from | Debt amount (mil. US$) | |||||||||
8/23/2022 |
Bombardier Inc. |
Canada | Aerospace & defense | B- | CCC+ | 6,360 | ||||||||
2/17/2022 |
Nabors Industries Ltd. |
Bermuda | Oil & gas exploration & production | B- | CCC+ | 5,101 | ||||||||
5/23/2022 |
Varsity Brands Holding Co. Inc. |
U.S. | Consumer products | B- | CCC+ | 3,100 | ||||||||
1/18/2022 |
Syniverse Holdings Inc. (Syniverse Technologies Corporation) |
U.S. | Telecommunications | B- | CCC+ | 2,922 | ||||||||
2/4/2022 |
Apex Tool Group LLC |
U.S. | Forest products & building materials | B- | CCC | 2,729 | ||||||||
12/1/2022 |
Bausch + Lomb Corporation (Bausch Health Companies Inc.) |
Canada | Health care | B- | CCC+ | 2,500 | ||||||||
4/5/2022 |
DTI Holdco Inc. |
U.S. | Media & entertainment | B- | CCC+ | 2,155 | ||||||||
4/4/2022 |
KUEHG Corp. |
U.S. | Media & entertainment | B- | CCC+ | 1,387 | ||||||||
8/17/2022 |
Peabody Energy Corp. |
U.S. | Metals, mining, & steel | B- | CCC+ | 1,382 | ||||||||
6/23/2022 |
Fitness International LLC |
U.S. | Media & entertainment | B- | CCC+ | 1,275 | ||||||||
6/10/2022 |
Spectacle Bidco Holdings Inc. |
Canada | Media & entertainment | B- | CCC+ | 1,232 | ||||||||
1/12/2022 |
National CineMedia Inc. |
U.S. | Media & entertainment | B- | CCC+ | 1,220 | ||||||||
7/29/2022 |
Hovnanian Enterprises Inc. |
U.S. | Homebuilders/real estate co. | B- | CCC+ | 1,166 | ||||||||
1/20/2022 |
Electronics for Imaging Inc. |
U.S. | High technology | B- | CCC+ | 1,100 | ||||||||
7/8/2022 |
WaterBridge Operating LLC (WaterBridge Resources, LLC) |
U.S. | Oil & gas exploration & production | B- | CCC+ | 1,000 | ||||||||
6/10/2022 |
Spring Education Group Inc. |
U.S. | Media & entertainment | B- | CCC+ | 866 | ||||||||
9/23/2022 |
SIRVA Inc. |
U.S. | Transportation | B- | CCC+ | 850 | ||||||||
7/28/2022 |
Vantage Specialty Chemicals Inc. |
U.S. | Chemicals, packaging, & environmental services | B- | CCC+ | 758 | ||||||||
4/4/2022 |
Learning Care Group (US) No. 2 Inc. (Learning Care Group (US) Inc.) |
U.S. | Media & entertainment | B- | CCC+ | 710 | ||||||||
5/13/2022 |
Jazz Acquisition Inc. (Wencor Group LLC) |
U.S. | Aerospace & defense | B- | CCC+ | 610 | ||||||||
2/25/2022 |
Yellow Corp. |
U.S. | Transportation | B- | CCC+ | 600 | ||||||||
8/25/2022 |
JSG I Inc. |
U.S. | Capital goods | B- | CCC+ | 460 | ||||||||
4/25/2022 |
Cornerstone Chemical Co. |
U.S. | Chemicals, packaging, & environmental services | B- | CCC+ | 450 | ||||||||
4/12/2022 |
BEP Ulterra Holdings Inc. |
U.S. | Oil & gas exploration & production | B- | CCC+ | 415 | ||||||||
3/14/2022 |
Salem Media Group Inc. |
U.S. | Media & entertainment | B- | CCC+ | 370 | ||||||||
9/9/2022 |
New TMW LLC |
U.S. | Consumer products | B- | CCC+ | 365 | ||||||||
2/23/2022 |
Screenvision LLC |
U.S. | Media & entertainment | B- | CCC+ | 350 | ||||||||
5/6/2022 |
Shape Technologies Group Inc. |
U.S. | Capital goods | B- | CCC+ | 350 | ||||||||
6/14/2022 |
KC Culinarte Holdings L.P. |
U.S. | Consumer products | B- | CCC+ | 313 | ||||||||
1/13/2022 |
JW Aluminum Continuous Cast Co. |
U.S. | Metals, mining, & steel | B- | CCC+ | 300 | ||||||||
8/12/2022 |
Miller's Ale House Inc. |
U.S. | Retail/restaurants | B- | CCC+ | 291 | ||||||||
9/1/2022 |
Calceus Acquisition Inc. |
U.S. | Consumer products | B- | CCC+ | 290 | ||||||||
4/21/2022 |
RCP Vega Inc. |
U.S. | High technology | B- | CCC+ | 260 | ||||||||
2/8/2022 |
Crew Energy Inc. |
Canada | Oil & gas exploration & production | B- | CCC+ | 235 | ||||||||
Data as of Dec. 31, 2022. Source: S&P Global Credit Research & Insights. |
Related Research
- This Week In Credit: Markets Prepare For Data Influx, Jan. 30, 2022
- This Month In Credit: Risk Remains For Weaker Borrowers Despite Cooling Inflation, Jan. 27, 2022
- Credit Trends: U.S. Corporate Bond Yields As Of Jan. 25, 2023, Jan. 26, 2023
- Ratings Performance Insights: 2022 In Review, Jan. 19, 2022
This report does not constitute a rating action.
Credit Research & Insights: | Nicole Serino, New York + 1 (212) 438 1396; nicole.serino@spglobal.com |
Patrick Drury Byrne, Dublin (00353) 1 568 0605; patrick.drurybyrne@spglobal.com | |
Leveraged Finance: | Ramki Muthukrishnan, New York + 1 (212) 438 1384; ramki.muthukrishnan@spglobal.com |
Minesh Patel, CFA, New York + 1 (212) 438 6410; minesh.patel@spglobal.com | |
Secondary Contact: | Daniel Hu, FRM, New York + 1 (212) 438 2206; daniel.hu@spglobal.com |
Research Contributor: | Vaishali Singh, CRISIL Global Analytical Center, an S&P affiliate, Mumbai |
No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.