Rating actions turned more positive in July with upgrades outnumbering downgrades for the first time in three months, and in all rating categories ‘B’ and higher. Despite higher interest rates, the homebuilders and real estate sector saw a mix of rating actions in July, including the month's largest downgrade, as well as two of the 10 largest upgrades and two rising stars. A slowdown in China may be starting to have spillover effects. The chemicals, packaging, and environmental services sector added four new potential downgrades during the month, as a couple cited slowing demand from Chinese buyers as a factor. The weakest links tally increased to 312 in July, with the U.S. health care sector leading the increase.