Although the ongoing erosion of credit conditions slowed in first-quarter 2023 compared with the previous quarter, according to our latest Rating Performance Insights published on Friday, rising downside risks suggest more downgrades and defaults may come. The number of negative outlook revisions and CreditWatch placements rose by an eye-catching 56% in the first quarter, with operating performance pressures being the top reasons for potential downgrades. This week, investors will continue to follow first-quarter earnings releases for updates on company guidance. Meanwhile, on the economic calendar, preliminary readings on first-quarter GDP and inflation in both the U.S. and Europe will likely set the tone for next week's Fed and ECB meetings.