S&P, Moody’s Cut Credit Grades at Fastest Pace In a Decade
- Downgrades outpace upgrades by more than 3 to 1 to start year
- Ford, Occidental Petroleum join growing list of fallen angels
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S&P Global Ratings and Moody’s Investors Service are downgrading U.S. companies at the fastest pace in more than a decade as debt-saddled corporations and entire industries struggle with a dramatic slump in demand brought on by the coronavirus pandemic.
Downgrades are outpacing upgrades at the two biggest credit-rating firms by more than 3 to 1 to start the year, the most on a quarterly basis since the depths of the financial crisis, according to data compiled by Bloomberg. At the same time, risk premiums on investment-grade bonds have surged, while junk yields breached 10% for the first time in more than eight years.