The proportion of downgrades to total rating actions reached 69% last year, the highest level since the financial crisis in 2009, but the outlook for global credit markets remains strong, according to Standard & Poor’s.
In a report released Wednesday, the rating agency said it downgraded 892 corporate issuers (accounting for about $6.9 trillion in rated debt) and upgraded 394 issuers (accounting for about $2.7 trillion) in 2015. Downgrades also were at the highest level since 2009.
American Express shares suffered a sharp decline on Friday as investors reacted to a 38% drop in fourth-quarter profit and a disappointing 2016 earnings forecast.
The stock was down nearly 12% at $55.28, a drop that followed a 3.7% slide in extended trading Thursday after AmEx reported its fourth-quarter results.
The rating agency said it downgraded 892 corporate issuers (accounting for about $6.9 trillion in rated debt) in 2015.
Tomas Eliasson is the second top executive to announce his departure from Electrolux since GE decided not to sell its appliance unit to the Swedish firm.
The shares slump nearly 12% as AmEx CEO Ken Chenault says the company is now “operating in a new reality.”
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Moody’s says there is a “high probability” the retailer could default after missing a key $20 million interest payment last week.
Falling oil prices drove down profits in most of the industrial businesses but GE reaffirmed its 2016 outlook.
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