Global Credit Quality Up in Quarter, S&P; Says
From Bloomberg News
The credit quality of companies around the world improved in the second quarter, as ratings increases trailed reductions by the smallest margin since the first three months of 2000, Standard & Poor’s said.
The ratio of ratings cuts to upgrades fell to 3.1 in the second quarter from 4.6 in the first quarter and 4.2 in all of 2002. And the 12-month global default rate for high-risk, high-yield borrowers dropped to 5.3% by June 30, less than half the default rate of 11.3% a year earlier.
In the United States, defaults by companies rated below BBB-minus by S&P; fell below 6% for the first time since the fourth quarter of 2000.
