Bond Rating Cuts Advance to Fastest Since ’09
Bloomberg is reporting that Standard & Poor’s and Moody’s Investors Service are cutting corporate debt ratings at the fastest pace since 2009 as a global economic slowdown and record borrowing erode credit quality.
Bloomberg said Europe’s second recession in four years and slowing global economic growth are helping to push a measure of corporate debt to earnings to a three-year high. Companies from the neediest to the most creditworthy sold unprecedented amounts of debt at record-low yields in 2012, Bloomberg noted.
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