Fallen-Angel Risk Back in Focus as Newell Brands Bonds Drop
- No wave of downgrades seen, but forced selling a real issue
- Investors not bracing for mass rating cuts as BBBs trim debt
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Newell Brands Inc. is reminding the bond market that investment-grade companies can get cut to junk, and that those downgrades can be painful for debt investors.
The maker of Rubbermaid storage containers and trash cans had its credit rating cut to speculative grade by S&P Global Ratings late Friday, the second bond grader to downgrade the company. With two junk ratings, Newell’s bonds are now off limits to many investment-grade bond investors, who may soon be forced to sell the company’s securities.