The tilt toward positive rating actions continues in 2022 as upgrades have continued to outpace downgrades in the speculative-grade category. There were 19 upgrades and 11 downgrades in the spec-grade category for the month of January. We entered 2022 with positive credit momentum stemming from favorable financing conditions and a robust economic recovery. That said, inflationary pressures, lingering coronavirus cases related to the omicron variant, supply disruptions (including labor shortages), and expectations for interest rates hikes have clouded the near-term economic outlook. However, credit conditions remain largely favorable.