Corporate Credit Ratings in a Downward Slide

Ratio of upgrades to downgrades for corporate credit ratings is 0.89 at Moody's and 0.83 at S&P, the lowest ratio since 2009.

Corporate creditworthiness in the U.S. is deteriorating at the fastest pace since 2009, with earnings growth slowing as yields rise from record lows.

The ratio of upgrades to downgrades fell to 0.89 in the first five months of the year after reaching a post-crisis high of 1.55 in 2010, according to data from Moody’s Capital Markets Group. At Standard & Poor’s, the proportion has declined to 0.83 as of last week from a year earlier.

Europe Benchmark

In London, the Markit iTraxx Europe Index, tied to 125 companies with investment-grade ratings, dropped 8.5 to 119.3.

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