Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

More Corporate Ratings Are Taking The Plunge


Economic Trends

MORE CORPORATE RATINGS ARE TAKING THE PLUNGE

The 1990 scorecard on Standard & Poor's Corp.'s ratings of corporate debt issues is in, and it doesn't make pretty reading. S&P reports that downgrades outnumbered upgrades by more than four to one last year. The company lowered a record 768 ratings totaling $510 billion, compared with 419 downgrades totaling $174.4 billion in 1989. At the same time, upgrades declined from 308 with a face value of $168.3 billion in 1989 to 189 and $112.9 billion in 1990.

S&P notes that much of last year's drop in credit quality was attributable to the woes afflicting financial institutions, which suffered 411 downgrades--nearly 10 times the number of upgrades. Some 299 industrial ratings were also downgraded, compared with 99 upgrades. S&P expects the negative trend in corporate ratings to persist in 1991, with "defaults probably reaching record levels."GENE KORETZ


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus