REGULATORY UNCERTAINTY TEMPERS RATINGS IN 2006

摘要

Industry credit quality improved for a second consecutive year in 2006 as upgrades outnumbered downgrades by a 3:2 ratio. The majority of upgrades occurred during the first half of the year as companies focused on debt reduction and back-to-basics strategies that were rewarded with rating increases. As a result, first half upgrades outnumbered downgrades by a 2.5:1 margin, and the industry average credit rating remained a solid bbb for a third consecutive year.