Rating actions surged, with downgrades accounting for two thirds of total actions. Speculative-grade issuers dominated downgrades, which were broad-based by sector. U.S.-based issuers made up the majority of upgrades and downgrades. The second fallen angel of 2025, pharmaceutical company Viatris Inc., was downgraded on elevated leverage expectations. We also added three potential fallen angels, all Spain-based gas distributors, due to regulatory reset risk and deleveraging challenges. There were two defaults, both selective defaults, U.S.-based plastic producer Poseidon Investment Intermediate L.P., and Netherlands-based lighting producer Bright Bidco B.V.