{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"The Upgrade: Episode 28:  Material Shifts In Key Credit Stats Drove Downgrades To 'B-' And 'CCC'","description":"In this discussion, Minesh Patel, the US sector lead of Leveraged Finance at S&amp;amp;P Global Ratings, teams up with the Director of Leveraged Finance, Hanna Zhang, to explore the key insights presented in Hanna's latest commentary, titled &quot;U.S. Leveraged Finance Q1 2023 Update: Ch-Ch-Ch-Changes -- Material Shifts In Key Credit Stats Drove Downgrades To 'B-' And 'CCC', And Upgrades To 'B-'.&quot; Key takeaways from the article include:  Within 12 months leading to a rating action, higher debt service costs and slower profit growth were often the leading factors in downgrades to 'B-' and the 'CCC' category (CCC+\/CCC\/CCC-). Median leverage for companies downgraded to the 'CCC' category rose to 15.5x as EBITDA all but dried up. It was 8x for entities rated 'B-'. We estimate that roughly 37% of 'B' rated issuers employ interest rate hedges. Interest rate sensitivity for 'B-' rated companies is much higher, with roughly 19% employing hedges and 90% floating-rate debt exposure. Speculative-grade borrowers may be returning to cash preservation, but 2022 was loaded with shareholder rewards and heavy working capital investment for companies rated 'B+' and higher. Issues with recovery expectations within the 50%-70% range account for two-thirds of total new issuance in the first quarter of 2023, although average recovery expectations remain near the low end of the post-2017 average.&amp;nbsp;  The commentary to the related article:  https:\/\/www.spglobal.com\/ratings\/en\/research\/articles\/230504-leveraged-finance-u-s-leveraged-finance-q1-2023-update-ch-ch-ch-changes-material-shifts-in-key-credit-st-12711927 The hyperlink to the interactive dashboard. https:\/\/www.spglobal.com\/ratings\/en\/research-insights\/sector-intelligence\/interactives\/us-leveraged-finance-q1-2023 &amp;nbsp; &amp;nbsp; &amp;nbsp; ","author_name":"CLOs Uncovered","author_url":"https:\/\/www.spglobal.com\/ratings\/en\/research-insights\/podcasts\/clos-uncovered","html":"<iframe title=\"Libsyn Player\" style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/27175491\/height\/90\/theme\/custom\/thumbnail\/yes\/direction\/forward\/render-playlist\/no\/custom-color\/88AA3C\/\" height=\"90\" width=\"600\" scrolling=\"no\"  allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen><\/iframe>","thumbnail_url":"https:\/\/assets.libsyn.com\/secure\/item\/27175491"}