U.S. Credit Market Risks Large Rise in Downgrades to Junk Status -- Market Talk

Dow Jones04-08

0856 GMT - The U.S. credit market has seen a large rise in potential 'fallen angel' candidates, or bonds that are at risk of being downgraded from investment-grade status to junk status, CreditSights analysts say in a note. At the same time, the number of prospective 'rising star' candidates--which could be upgraded to investment-grade status--has dwindled. "The volume of prospective fallen angel debt totals $149 billion, outweighing the $24 billion of prospective rising star debt by a 6:1 ratio," they say. This ratio has more than doubled compared to the fourth quarter, they say. CreditSights identifies seven potential fallen angel candidates over the next 12 months, including Ford. That compares with just five possible rising star candidates.(miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

April 08, 2025 04:56 ET (08:56 GMT)

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