• Rating activity was broadly neutral last week as the counts of downgrades and upgrades were equal, and outlook and CreditWatch changes were nearly even as well. • Negative rating actions were predominantly on speculative-grade issuers while investment grade dominated among positive actions. • There were two defaults last week, on U.S.-based plastic manufacturer Poseidon Investment Intermediate L.P. and U.K.-based telecommunications company TalkTalk Holdings Ltd. Both defaults were due to distressed exchanges. • Risk pricing eased. Bond and CDS spreads tightened across the board, with the moves larger for speculative grade.