Leveraged Finance: Reshuffling The Debt: Why Some U.S. Spec-Grade Corporate Issuers Maintained Stable Credit Quality Through The Downturn Apr 11
Standard & Poors, April 2011
Abstract
In the years leading up to the credit crunch, speculative-grade debt (i.e., debt rated 'BB+' or lower) issuance had grown tremendously. Prior to the collapse of Lehman Brothers in September 2008, Standard & Poor's Ratings Services' median credit rating for nonfinancial U.S. corporations was 'BB-' (versus 'BBB-' in 1997 and 'A' in 1980), and it remains at the 'BB-' level currently. In fact, by September 2008, speculative-grade ratings constituted the majority of all but three U.S. nonfinancial corporate industry sectors (see chart 1). Speculative-grade ratings peaked in 2007, when Standard & Poor's rated 67% of all rated U.S. nonfinancial corporations at a speculative-grade level. The figure has since come down, but only marginally, to about 64%. By their nature, speculative-grade...
Companies mentioned in this report are:
- Community Health Systems Inc.
- DISH Network Corp.
- GCI Inc.
- Blount Inc.
- RSC Equipment Rental Inc.
- WESCO International Inc.
- EnerSys
- Insight Communications Co. Inc.
- H&E Equipment Services Inc.
- Dycom Industries Inc.
- Carestream Health Inc.
- CPM Holdings Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- Community Health Systems Inc.
- DISH Network Corp.
- GCI Inc.
- Blount Inc.
- RSC Equipment Rental Inc.
- WESCO International Inc.
- EnerSys
- Insight Communications Co. Inc.
- H&E Equipment Services Inc.
- Dycom Industries Inc.
- Carestream Health Inc.
- CPM Holdings Inc.
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