Junk territory: U.S. corporate debt ratings near 15-year low
CNNMoney - Mar 24, 2016
The average rating on U.S. corporate debt has hit nearly a 15-year low, according to a new report by Standard & Poor's.
"We believe corporate default rates could increase over the next few years," according to S&P credit analysts Jacob Crooks and David Tesher.
The average rating on companies that issue debt has fallen to 'BB,' or junk status. That is even below the average S&P rating for U.S. corporate debt during and in the aftermath of the financial crisis in 2008 and 2009.
There are already concerns about energy companies defaulting on loans due to low oil prices. But new tech firms like Solera and media companies like iHeart too have had their credit rating downgraded this year, according to S&P.
Since 2012, there's been a surge in low-rated companies seeking cash.
