Reported 20 days ago
Major U.S. companies could face downgrades from their investment-grade ratings, potentially flooding junk-bond markets with up to $60 billion in debt due to rising inflation and increased operating costs. Barclays anticipates this surge in 'fallen angels'—firms that lose their investment-grade status—could reach the highest level in nearly a decade by 2025, as prominent names like Boeing, Paramount, Warner Bros., and Charter Communications are at risk. While some investors expect the high-yield market to absorb these potential downgrades, the situation remains precarious, raising concerns about the impact on the credit markets.
Source: YAHOO