The financial markets remained remarkably resilient to geopolitical uncertainty in 2024. Upgrades outpaced downgrades over the course of the year, while issuance was strong across the entire rating spectrum. Borrowers made material progress with refinancing upcoming maturities, which will now peak in 2028. Despite the positive rating momentum and shrinking 'B-' and 'CCC+' rated issuer populations, European CLOs' exposure to the 'B-' and 'CCC+' baskets has increased in the past year. This is largely due to a few downgrades of widely held issuers.