Global Credit Quality Up in Quarter, S&P; Says
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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.
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