Home Economy FirstFT: Credit rating upgrades hit record pace as US economy rebounds

FirstFT: Credit rating upgrades hit record pace as US economy rebounds

4

Good morning. This article is an on-site version of our FirstFT newsletter. Sign up to our AsiaEurope/Africa or Americas edition to get it sent straight to your inbox every weekday morning

How well did you keep up with the news this week? Take our quiz.

Credit rating agencies are upgrading hundreds of billions of dollars of US corporate debt, in a partial reversal of the downgrades at the outset of the pandemic that reflects the strong rebound in profitability across much of corporate America.

Roughly $361bn of higher-rated, investment grade bonds have been upgraded in the past two months, including a record $184bn in June, according to data from Bank of America.

The brisk turnround shows credit rating agencies such as S&P Global, Moody’s and Fitch believe the economic recovery spurred by vaccine rollouts has made corporate debt piles more manageable. It also reflects the abundant liquidity and low borrowing costs available to…

Click here for full article…www.ft.com