Key Takeaways
- There were no fallen angels in January 2021, continuing a trend of general improvement in the 'BBB' category as the global economy is set to largely recover this year and financing conditions remain favorable.
- The number of potential fallen angels continued to ease gradually, with only one issuer on CreditWatch negative, signaling less immediate risk of broad credit deterioration compared to second-quarter 2020.
- The difference in spreads between 'BBB-' and 'BB+' is narrowing, indicating lower incremental cost of issuance for investment-grade issuers that become fallen angels.
- Strong mergers and acquisitions activity resulted in three rising stars in January, a noteworthy development after 2020 saw the lowest tally of rising stars ever.
No New Fallen Angels In January
There were no new fallen angels (issuers downgraded to speculative grade, 'BB+' or below, from investment grade, 'BBB-' or above) in January 2021. This and the reduced number of fallen angels in recent months have led to the ratio of fallen angels to investment-grade issuers continuing its gradual descent.
This is a welcome trend, given that in 2020, fallen angels became so broad-based that the traditional top five fallen angels sectors (financial institutions, utilities, media and entertainment, retail, and consumer products) contributed the least to the overall count in 15 years, at 31%.
Chart 1
Chart 2
Potential Fallen Angels Count Continues To Ease Very Slowly
Three issuers were removed from the list of potential fallen angels (issuers rated 'BBB-' with negative outlooks or ratings on CreditWatch with negative implications) in January:
- Peugeot S.A. was removed following its merger with Fiat Chrysler Automotive N.V., now rated as Stellantis N.V.
- Cenovus Energy Inc. was removed after its merger with Husky Energy Inc. brought the outlook to stable.
- The Mosaic Co. was removed on the back of diminished risk to its credit metrics.
Meanwhile, two issuers were added to the potential fallen angel list:
- CAS Holding No.1 Ltd. was added because of high leverage at its Hong Kong-based parent, PCCW.
- Genting New York LLC is a newly rated company, matching the rating and outlook on its parent, Genting Bhd.
This brings the count of potential fallen angels to 98 (with total debt of $535 billion), well below the peak in second-quarter 2020 at 126, but still elevated compared to before 2020.
The financial institutions and media and entertainment sectors still dominate potential fallen angels. However, the sheer number of financial institutions we rate makes the proportion of potential fallen angels among investment-grade issuers much lower for financial institutions.
Chart 3
Chart 4
Positive Trends For Fallen Angels Gradually Press On
On a positive note, there remains only one potential fallen angel currently on CreditWatch with negative implications, compared with 26 of the 96 potential fallen angels in April. This points to less immediate credit risk and, potentially, a slower pace of new fallen angels in the near term. The estimated time frame of a potential downgrade is 90 days for a negative CreditWatch, compared with six to 24 months for a negative outlook (see "Guide To Credit Rating Essentials, What Are They And How Do They Work?"). Put differently, a negative outlook potentially leaves more time for the issuer to recover from current challenges.
Meanwhile the cost of becoming a fallen angel continues to decline after a temporary spike at the end of 2020. Although financing conditions remain accommodative, there has been a considerable improvement for those at the cusp of investment-grade since major central banks around the world enacted significant credit market support. As such, fallen angels no longer face as steep a jump in funding costs as they would have at the peak of the pandemic.
Chart 5
Three New Rising Stars In January
After 2020 ended with the lowest rising star count on record, three issuers became rising stars in January (speculative-grade issuers upgraded into investment-grade). All three were due to mergers and acquisitions.
- WPX Energy Inc. was acquired by Devon Energy and upgraded to 'BBB-' from 'BB-'.
- Fiat Chrysler merged with Peugeot (see above) and was upgraded to 'BBB-' from 'BB+'.
- Parsley Energy LLC was acquired by Pioneer Energy LLC and upgraded to 'BBB' from 'BB'.
Although we typically exclude issuers from rising stars or fallen angels if the ratings are withdrawn, as they were for WPX and Parsley after their respective mergers, these entities still have rated debt outstanding, and are considered by S&P Global Ratings to be core subsidiaries of their new parents.
More broadly, we expect mergers and acquisitions (M&A) to reach or exceed pre-pandemic levels in 2021 as stable sectors like technology, telecoms, and health care seek growth opportunities and depressed sectors--including energy--may see M&A transactions for defensive reasons.
Meanwhile, the count of potential rising stars (issuers with a 'BB+' rating and carrying a positive outlook or CreditWatch with positive implications) dipped to 16, with two removals and one addition. The removals were both due to M&A activity--the aforementioned Fiat Chrysler-Peugeot merger that resulted in the former becoming a rising star, and HD Supply Inc. being acquired by 'A' rated Home Depot. Finally, Netflix Inc. became a rising star after being upgraded to 'BB+' and assigned a positive outlook on the back of strong operating performance.
Related Research
- 'BBB' Pulse: Potential Fallen Angels Continue To Decrease Even As Risks Remain, Jan. 26, 2021
- Netflix Inc. Upgraded To ‘BB+’ On Strong Streaming Video Trends And Free Cash Flow Improvement; Outlook Positive , Jan. 26, 2021
- Genting New York Rated 'BBB-'; Outlook Negative; Notes Rated 'BBB-', Jan. 25, 2021
- The Mosaic Co. Outlook Revised To Stable From Negative; 'BBB-' Ratings Affirmed, Jan. 21, 2021
- Peugeot S.A. Rating Withdrawn After Merger With Fiat Chrysler Automotive N.V. Into Stellantis N.V., Jan. 18, 2021
- Parsley Energy LLC. Issuer Credit Rating Raised to 'BBB', Then Withdrawn On Close Of Acquisition By Pioneer, Jan. 14, 2021
- Fiat Chrysler Automobiles Upgraded to 'BBB-' On Merger With Peugeot; Outlook Stable, Jan. 9, 2021
- WPX Energy Inc. Issuer Credit Rating Raised To 'BBB-', then Withdrawn On Close Of Acquisition by Devon Energy, Jan. 8, 2021
- CAS Holding Assigned 'BBB-' Rating With Negative Outlook; Perpetual Subordinated Securities Rated 'BB', Jan. 4, 2021
- Cenovus Energy Inc. Outlook Revised To Stable From Negative On Completion Of Merger With Husky; 'BBB-' Rating Affirmed, Jan. 4, 2021
- Home Depot Inc.’s Acquisition Of HD Supply Is Credit Positive; Third Quarter Performance Is Solid, Nov. 18, 2020
Table 1
No Fallen Angels In January 2021 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Date | Issuer | To | From | Sector/subsector | Country | Rated debt affected (Mil. US$) | ||||||||
12/22/2020 | GKN Holdings Ltd. | BB+ | BBB- | Automotive | U.K. | 1,012 | ||||||||
12/16/2020 | Innergex Renewable Energy Inc. | BB+ | BBB- | Merchant power | Canada | 125 | ||||||||
10/30/2020 | FirstEnergy Corp. | BB+ | BBB | Utilities | U.S. | 18,373 | ||||||||
10/12/2020 | EPR Properties | BB+ | BBB- | Homebuilders/real estate companies | U.S. | 3,486 | ||||||||
9/22/2020 | Southeast Supply Header, LLC | BB+ | BBB- | Midstream | U.S. | 400 | ||||||||
9/21/2020 | Minsur S.A. (Breca Mineria S.A.C. and Subsidiaries) | BB+ | BBB- | Metals, mining, and steel | Peru | 450 | ||||||||
9/9/2020 | Howmet Aerospace Inc | BB+ | BBB- | Aerospace and defense | U.S. | 7,182 | ||||||||
9/3/2020 | Nordstrom Inc. | BB+ | BBB- | Retail/restaurants | U.S. | 3,566 | ||||||||
8/17/2020 | Accor S.A. | BB+ | BBB- | Media and entertainment | France | 5,490 | ||||||||
7/31/2020 | Valeo S.A. | BB+ | BBB- | Automotive | France | 4,108 | ||||||||
7/20/2020 | IHO Verwaltungs GmbH | BB+ | BBB- | Automotive | Germany | 8,608 | ||||||||
7/14/2020 | Zijin Mining Group Co. Ltd. | BB+ | BBB- | Metals, mining, and steel | China | 350 | ||||||||
7/9/2020 | Emaar Properties PJSC | BB+ | BBB- | Homebuilders/real estate companies | U.A.E. | 3,250 | ||||||||
7/9/2020 | DIFC Investments Ltd. | BB+ | BBB- | Homebuilders/real estate companies | U.A.E. | 1,400 | ||||||||
7/8/2020 | Braskem S.A. (Odebrecht S.A.) | BB+ | BBB- | Chemicals, packaging, and environmental services | Brazil | 4,150 | ||||||||
6/26/2020 | Axis Bank Ltd. | BB+ | BBB- | Financial institutions | India | 1,095 | ||||||||
6/23/2020 | Carnival Corp. | BB- | BBB- | Media and entertainment | Panama | 9,265 | ||||||||
6/15/2020 | Tech Data Corp. | BB | BBB- | High technology | U.S. | 3,750 | ||||||||
6/15/2020 | Embraer S.A. | BB+ | BBB- | Aerospace and defense | Brazil | 500 | ||||||||
5/28/2020 | Rolls-Royce PLC (Rolls-Royce Holdings PLC) | BB | BBB- | Aerospace and defense | U.K. | 3,996 | ||||||||
5/26/2020 | Multibank Inc. y Subsidiarias | BB+ | BBB | Financial institutions | Panama | 300 | ||||||||
5/22/2020 | Trinity Industries Inc. | BB+ | BBB- | Transportation | U.S. | 400 | ||||||||
5/20/2020 | International Consolidated Airlines Group, S.A. | BB | BBB- | Transportation | Spain | 1,086 | ||||||||
5/20/2020 | Deutsche Lufthansa AG | BB+ | BBB- | Transportation | Germany | 1,086 | ||||||||
5/20/2020 | British Airways PLC | BB | BBB- | Transportation | U.K. | 806 | ||||||||
4/20/2020 | Hillenbrand Inc., | BB+ | BBB- | Capital goods | U.S. | 1,250 | ||||||||
4/10/2020 | Rockies Express Pipeline LLC | BB+ | BBB- | Midstream | U.S. | 2,050 | ||||||||
4/9/2020 | Renault S.A. | BB+ | BBB- | Automotive | France | 24,979 | ||||||||
4/3/2020 | ZF Friedrichshafen AG | BB+ | BBB- | Automotive | Germany | 7,027 | ||||||||
4/2/2020 | Service Properties Trust | BB+ | BBB- | Homebuilders/real estate companies | U.S. | 5,350 | ||||||||
4/2/2020 | Royal Caribbean Cruises Ltd. | BB | BBB- | Media and entertainment | U.S. | 1,750 | ||||||||
3/27/2020 | Continental Resources Inc. | BB+ | BBB- | Oil and gas | U.S. | 5,200 | ||||||||
3/27/2020 | Esselunga SpA | BB+ | BBB- | Retail/restaurants | Italy | 1,105 | ||||||||
3/27/2020 | Trinidad Generation Unlimited | BB+ | BBB- | Utilities | Trinidad and Tobago | 600 | ||||||||
3/26/2020 | Apache Corp. | BB+ | BBB | Oil and gas | U.S. | 11,080 | ||||||||
3/26/2020 | Western Midstream Operating LP (Occidental Petroleum Corp.) | BB+ | BBB- | Midstream | U.S. | 8,120 | ||||||||
3/26/2020 | Marks & Spencer PLC (Marks & Spencer Group PLC) | BB+ | BBB- | Retail/restaurants | U.K. | 2,068 | ||||||||
3/26/2020 | Patterson-UTI Energy Inc., | BB+ | BBB | Oil and gas | U.S. | 875 | ||||||||
3/25/2020 | Ford Motor Co. | BB+ | BBB- | Automotive | U.S. | 113,862 | ||||||||
3/25/2020 | Occidental Petroleum Corp. | BB+ | BBB | Oil and gas | U.S. | 43,913 | ||||||||
3/24/2020 | Delta Air Lines Inc. | BB | BBB- | Transportation | U.S. | 4,550 | ||||||||
3/23/2020 | Immobiliare Grande Distribuzione SIIQ S.p.A. | BB+ | BBB- | Homebuilders/real estate companies | Italy | 855 | ||||||||
2/24/2020 | Ruby Pipeline LLC | BB | BBB- | Midstream | U.S. | 825 | ||||||||
2/18/2020 | Macy's Inc. | BB+ | BBB- | Retail/restaurants | U.S. | 7,149 | ||||||||
2/14/2020 | Kraft Heinz Co. (The) | BB+ | BBB- | Consumer products | U.S. | 31,539 | ||||||||
2/4/2020 | EQM Midstream Partners LP | BB+ | BBB- | Utilities | U.S. | 3,500 | ||||||||
2/3/2020 | EQT Corp. | BB+ | BBB- | Utilities | U.S. | 4,945 | ||||||||
1/31/2020 | Spirit AeroSystems Inc. | BB | BBB- | Aerospace and defense | U.S. | 1,900 | ||||||||
1/13/2020 | Atlantia SpA | BB- | BBB- | Utilities | Italy | 16,297 | ||||||||
Data as of Jan. 31, 2021. Fallen angels are defined as investment-grade issuers currently with bonds outstanding that have been downgraded into speculative-grade (i.e. from 'BBB-' or above, to 'BB+' or below). Includes all rated issuers with valid outstanding debt at the time of the rating action. Valid debt includes issuer-level debt (both secured and unsecured), bank loans, subordinated debt, medium-term notes, preferred stock, convertible debt and drawdowns under MTN programs and excludes commercial paper programs, shelf registrations, certificates of deposit, and debt rated on a confidential basis. Source: S&P Global Ratings Research. |
Table 2
Potential Fallen Angels Count Stays Below 100, Only One Issuer Placed On Negative CreditWatch | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
'BBB-' rated issuers with negative outlooks or on CreditWatch with negative implications | ||||||||||||||
Subsector | Issuer | CreditWatch Negative/Negative Outlook | New to the list this month | Country | Region | Debt amount (Mil. US$) | ||||||||
Financial institutions | AIB Group PLC | Negative | Ireland | Europe | 7,368 | |||||||||
Utilities | Abertis Infraestructuras S.A. | Negative | Spain | Europe | 21,474 | |||||||||
Financial institutions | Ally Financial Inc. | Negative | U.S. | U.S. | 18,329 | |||||||||
Media and entertainment | Amadeus IT Group S.A. | Negative | Spain | Europe | 4,859 | |||||||||
Metals, mining, and steel | ArcelorMittal | Negative | Luxembourg | Europe | 13,371 | |||||||||
Financial institutions | Argo Group International Holdings Ltd. | Negative | U.S. | U.S. | 275 | |||||||||
Transportation | Aviation Capital Group LLC | Negative | U.S. | U.S. | 4,428 | |||||||||
High technology | Avnet Inc. | Negative | U.S. | U.S. | 1,200 | |||||||||
Transportation | Avolon Holdings Ltd. | Negative | Cayman Islands | U.S. | 10,649 | |||||||||
Financial institutions | Bank of Ireland Group PLC | Negative | Ireland | Europe | 6,998 | |||||||||
Homebuilders/real estate companies | Beijing Capital Group Co. Ltd., | Negative | China | Asia/Pacific | 500 | |||||||||
Chemicals, packaging, and environmental services | Beijing Haidian State-Owned Asset Investment Group Co. Ltd. | Negative | China | Asia/Pacific | 500 | |||||||||
Telecommunications | Bharti Airtel Ltd. | Negative | India | Asia/Pacific | 4,416 | |||||||||
Aerospace and defense | Boeing Co. | Negative | U.S. | U.S. | 50,248 | |||||||||
Financial institutions | BrightSphere Investment Group Inc. | Negative | U.S. | U.S. | 400 | |||||||||
Homebuilders/real estate companies | Brookfield Property REIT Inc. | Negative | U.S. | U.S. | 13,700 | |||||||||
Telecommunications | CAS Holding No.1 Ltd. | Negative | Yes | British Virgin Islands | Europe | 3,393 | ||||||||
Metals, mining, and steel | Cameco Corp. | Negative | Canada | Canada | 783 | |||||||||
Retail/restaurants | Capri Holdings Ltd. | Negative | British Virgin Islands | Europe | 450 | |||||||||
Metals, mining, and steel | Carpenter Technology Corp. | Negative | U.S. | U.S. | 600 | |||||||||
Forest products and building materials | Celulosa Arauco y Constitucion, S.A. (ARAUCO) | Negative | Chile | Latin America | 3,900 | |||||||||
Homebuilders/real estate companies | China Jinmao Holdings Group Ltd. | Negative | Hong Kong | Asia/Pacific | 1,744 | |||||||||
Media and entertainment | Choice Hotels International Inc. | Negative | U.S. | U.S. | 1,250 | |||||||||
Homebuilders/real estate companies | Citycon Oyj | Negative | Finland | Europe | 2,364 | |||||||||
Retail/restaurants | Darden Restaurants Inc. | Negative | U.S. | U.S. | 1,250 | |||||||||
Financial institutions | Discover Financial Services | Negative | U.S. | U.S. | 11,939 | |||||||||
Forest products and building materials | Eagle Materials Inc. | Watch Neg | U.S. | U.S. | 350 | |||||||||
Oil and gas | Ecopetrol S.A. | Negative | Colombia | Latin America | 9,350 | |||||||||
Utilities | Eesti Energia AS | Negative | Estonia | Europe | 607 | |||||||||
Utilities | Empresa Nacional del Petroleo | Negative | Chile | Latin America | 2,480 | |||||||||
Merchant power | Enable Midstream Partners, LP | Negative | U.S. | U.S. | 1,850 | |||||||||
Midstream | Energy Transfer LP | Negative | U.S. | U.S. | 46,902 | |||||||||
Media and entertainment | Expedia Group Inc., | Negative | U.S. | U.S. | 7,040 | |||||||||
Financial institutions | FCE Bank PLC | Negative | U.K. | Europe | 7,643 | |||||||||
Financial institutions | Financiera de Desarrollo Territorial S.A. FINDETER | Negative | Colombia | Latin America | 500 | |||||||||
Transportation | FirstGroup PLC | Negative | U.K. | Europe | 1,201 | |||||||||
Capital goods | Flowserve Corp. | Negative | U.S. | U.S. | 1,907 | |||||||||
Capital goods | Fluor Corp. | Negative | U.S. | U.S. | 1,707 | |||||||||
Media and entertainment | Genting New York LLC | Negative | Yes | U.S. | U.S. | 400 | ||||||||
Financial institutions | Golub Capital BDC, Inc | Negative | U.S. | U.S. | 400 | |||||||||
Diversified | Grupo de Inversiones Suramericana S.A. | Negative | Colombia | Latin America | 850 | |||||||||
Oil and gas | Hess Corp | Negative | U.S. | U.S. | 7,600 | |||||||||
Aerospace and defense | Hexcel Corp. | Negative | U.S. | U.S. | 700 | |||||||||
Media and entertainment | Host Hotels & Resorts Inc. | Negative | U.S. | U.S. | 5,200 | |||||||||
Media and entertainment | Hyatt Hotels Corp. | Negative | U.S. | U.S. | 2,950 | |||||||||
Financial institutions | ICICI Bank Ltd. | Negative | India | Asia/Pacific | 2,150 | |||||||||
Consumer products | ISS A/S | Negative | Denmark | Europe | 2,551 | |||||||||
Media and entertainment | ITV PLC | Negative | U.K. | Europe | 2,065 | |||||||||
Utilities | Indigo Group S.A. | Negative | France | Europe | 2,399 | |||||||||
Media and entertainment | Informa PLC | Negative | U.K. | Europe | 2,865 | |||||||||
Midstream | Inter Pipeline Ltd. | Negative | Canada | Canada | 3,895 | |||||||||
Media and entertainment | InterContinental Hotels Group PLC | Negative | U.K. | Europe | 2,893 | |||||||||
Financial institutions | Intercorp Financial Services Inc. | Negative | Peru | Latin America | 600 | |||||||||
Media and entertainment | JCDecaux S.A. | Negative | France | Europe | 2,369 | |||||||||
Sovereign | Kingdom of Morocco | Negative | Morocco | Eastern Europe/Middle East/Africa | 8,894 | |||||||||
Retail/restaurants | Kohl's Corp. | Negative | U.S. | U.S. | 3,200 | |||||||||
Media and entertainment | Las Vegas Sands Corp. | Negative | U.S. | U.S. | 10,300 | |||||||||
Automotive | Lear Corp. | Negative | U.S. | U.S. | 2,300 | |||||||||
Utilities | Madrilena Red de Gas, S.A.U. | Negative | Spain | Europe | 1,154 | |||||||||
Financial institutions | Marex Spectron Group Ltd. | Negative | U.K. | Europe | 6 | |||||||||
Media and entertainment | Marriott International Inc. | Negative | U.S. | U.S. | 10,037 | |||||||||
Retail/restaurants | Metro AG | Negative | Germany | Europe | 2,035 | |||||||||
Capital goods | Metso Outotec Oyj | Negative | Finland | Europe | 850 | |||||||||
Consumer products | Molson Coors Beverage Co. | Negative | U.S. | U.S. | 7,372 | |||||||||
Automotive | Nexteer Automotive Group Ltd. | Negative | Cayman Islands | U.S. | 250 | |||||||||
Automotive | Nissan Motor Co. Ltd. | Negative | Japan | Asia/Pacific | 16,633 | |||||||||
Financial institutions | Nova Ljubljanska Banka D.D. | Negative | Slovenia | Europe | 292 | |||||||||
Chemicals, packaging, and environmental services | OCP S.A. | Negative | Morocco | Eastern Europe/Middle East/Africa | 2,850 | |||||||||
Oil and gas | Ovintiv Inc. | Negative | U.S. | U.S. | 6,450 | |||||||||
Utilities | PT Pelabuhan Indonesia III (Persero) | Negative | Indonesia | Asia/Pacific | 500 | |||||||||
Consumer products | PVH Corp. | Negative | U.S. | U.S. | 3,567 | |||||||||
Financial institutions | Prospect Capital Corp. | Negative | U.S. | U.S. | 5,977 | |||||||||
Utilities | Puget Energy Inc. | Negative | U.S. | U.S. | 6,278 | |||||||||
High technology | Rakuten Inc., | Negative | Japan | Asia/Pacific | 800 | |||||||||
Sovereign | Republic of Colombia | Negative | Colombia | Latin America | 29,882 | |||||||||
Media and entertainment | Resorts World Las Vegas LLC | Negative | U.S. | U.S. | 1,400 | |||||||||
Homebuilders/real estate companies | Retail Opportunity Investments Corp. | Negative | U.S. | U.S. | 500 | |||||||||
Sovereign | Romania | Negative | Romania | Europe | 44,628 | |||||||||
Oil and gas | SK Innovation Co. Ltd., | Negative | Korea | Asia/Pacific | 500 | |||||||||
Media and entertainment | SKYCITY Entertainment Group Ltd. | Negative | New Zealand | Asia/Pacific | 340 | |||||||||
Transportation | Stagecoach Group PLC | Negative | U.K. | Europe | 549 | |||||||||
Forest products and building materials | Standard Industries Inc. | Negative | U.S. | U.S. | 5,022 | |||||||||
Consumer products | Steelcase Inc. | Negative | U.S. | U.S. | 450 | |||||||||
Consumer products | Suedzucker AG | Negative | Germany | Europe | 1,822 | |||||||||
Forest products and building materials | Suzano S.A. | Negative | Brazil | Latin America | 5,900 | |||||||||
Financial institutions | Synchrony Financial | Negative | U.S. | U.S. | 8,000 | |||||||||
Financial institutions | Synovus Financial Corp. | Negative | U.S. | U.S. | 2,130 | |||||||||
Consumer products | Sysco Corp. | Negative | U.S. | U.S. | 12,082 | |||||||||
Financial institutions | Tanner Servicios Financieros S.A. | Negative | Chile | Latin America | 365 | |||||||||
Consumer products | Tapestry Inc., | Negative | U.S. | U.S. | 1,600 | |||||||||
Capital goods | Timken Co. (The) | Negative | U.S. | U.S. | 850 | |||||||||
Chemicals, packaging, and environmental services | UPL Corp. Ltd. | Negative | Mauritius | Eastern Europe/Middle East/Africa | 1,700 | |||||||||
High technology | VMware Inc. | Negative | U.S. | U.S. | 4,750 | |||||||||
Financial institutions | Virgin Money UK PLC | Negative | U.K. | Europe | 5,008 | |||||||||
Capital goods | Westinghouse Air Brake Technologies Corp. | Negative | U.S. | U.S. | 3,500 | |||||||||
Homebuilders/real estate companies | Yuexiu Real Estate Investment Trust | Negative | Hong Kong | Asia/Pacific | 400 | |||||||||
Automotive | Zhejiang Geely Holding Group Co. Ltd., | Negative | China | Asia/Pacific | 3,911 | |||||||||
Transportation | easyJet PLC | Negative | U.K. | Europe | 1,822 | |||||||||
Data as of Jan. 31, 2021. Potential fallen angels are defined as issuers rated ‘BBB-‘ by S&P Global Ratings with negative outlooks or ratings on CreditWatch with negative implications, and which currently have bonds outstanding. Includes all rated issuers with valid outstanding debt at the time of the rating action. Valid debt includes issuer-level debt (both secured and unsecured), bank loans, subordinated debt, medium-term notes, preferred stock, convertible debt and drawdowns under MTN programs and excludes commercial paper programs, shelf registrations, certificates of deposit, and debt rated on a confidential basis. Source: S&P Global Ratings Research. |
Table 3
Three Rising Stars In January 2021 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Date | Issuer | To | From | Sector/subsector | Country | Rated debt affected (Mil. US$) | ||||||||
13-Jan-2021 | Parsley Energy, LLC. | BBB | BB | Oil and gas | U.S. | 4,750 | ||||||||
8-Jan-2021 | Fiat Chrysler Automobiles N.V. | BBB- | BB+ | Automotive | Netherlands | 25,561 | ||||||||
7-Jan-2021 | WPX Energy Inc., | BBB- | BB- | Oil and gas | U.S. | 4,750 | ||||||||
Data as of Jan. 31, 2021. Rising stars are defined as speculative-grade issuers currently with bonds outstanding that have been upgraded into investment-grade (i.e. from 'BB+' and below, to 'BBB-' and above). Includes all rated issuers with valid outstanding debt at the time of the rating action. Valid debt includes issuer-level debt (both secured and unsecured), bank loans, subordinated debt, medium-term notes, preferred stock, convertible debt and drawdowns under MTN programs and excludes commercial paper programs, shelf registrations, certificates of deposit, and debt rated on a confidential basis. Source: S&P Global Ratings Research. |
Table 4
Potential Rising Stars Stood At 16 With The Inclusion Of Netflix | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Subsector | Issuer | Outlook/Creditwatch change | New to the list this month | Country | Debt amount (Mil. US$ ) | |||||||
Consumer products | JDE Peet's N.V. | Positive | Netherlands | 5,911 | ||||||||
Financial institutions | CIT Group Inc., | Watch Positive | U.S. | 5,651 | ||||||||
Financial institutions | FleetCor Technologies Inc., | Positive | U.S. | 3,040 | ||||||||
Forest products and building materials | PulteGroup Inc., | Positive | U.S. | 2,997 | ||||||||
Forest products and building materials | Smurfit Kappa Group PLC | Positive | Ireland | 2,126 | ||||||||
High technology | Advanced Micro Devices Inc. | Watch Positive | U.S. | 1,305 | ||||||||
Homebuilders/real estate companies | Lennar Corp. | Positive | U.S. | 5,000 | ||||||||
Homebuilders/real estate companies | MDC Holdings Inc. | Positive | U.S. | 900 | ||||||||
Homebuilders/real estate companies | Shimao Group Holdings Ltd. | Positive | Cayman Islands | 2,100 | ||||||||
Insurance | Magellan Health Inc. | Watch Positive | U.S. | 400 | ||||||||
Media & Entertainment | Netflix Inc | Positive | Yes | U.S. | 16,180 | |||||||
Metals, mining & steel | Gold Fields Ltd. | Positive | South Africa | 1,000 | ||||||||
Metals, mining & steel | Yamana Gold Inc. | Positive | Canada | 1,800 | ||||||||
Transportation | Sovcomflot PAO | Positive | Russia | 750 | ||||||||
Utilities | Hrvatska Elektroprivreda d.d. | Positive | Croatia | 550 | ||||||||
Utilities | Vistra Corp. | Positive | U.S. | 10,198 | ||||||||
Data as of Jan. 31, 2021. Potential rising stars are defined as issuers rated ‘BB+‘ by S&P Global Ratings with positive outlooks or ratings on CreditWatch with positive implications, and which currently have bonds outstanding. Includes all rated issuers with valid outstanding debt at the time of the rating action. Valid debt includes issuer-level debt (both secured and unsecured), bank loans, subordinated debt, medium-term notes, preferred stock, convertible debt and drawdowns under MTN programs and excludes commercial paper programs, shelf registrations, certificates of deposit, and debt rated on a confidential basis. Source: S&P Global Ratings Research. |
This report does not constitute a rating action.
Credit Markets Research: | Vincent R Conti, Singapore + 65 6216 1188; vincent.conti@spglobal.com |
Sarah Limbach, Paris + 33 14 420 6708; Sarah.Limbach@spglobal.com | |
Sudeep K Kesh, New York + 1 (212) 438 7982; sudeep.kesh@spglobal.com | |
Research Contributor: | Lyndon Fernandes, Mumbai; lyndon.fernandes@spglobal.com |
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