The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Credit quality of S&P 500 still on the up, notes S&P's.

The credit quality for members of the S&P 500 index has improved since the beginning of 2004, although downgrades continue to outpace upgrades by a decreasing proportion, according to S&Ps, the ratings agency. The downgrade ratio—ratio of downgrades to total rating actions—of S&P 500 index members was 56.8% for the period starting December 31 2003, and ended March 8 2005, marginally ahead of the broader US downgrade ratio of 59.6%.

In 2003, the downgrade ratio for members of the S&P 500 was 74.0%. As of March 8 2005, the distribution of outlooks and CreditWatch listings shows that entities listed with a negative bias still outnumber entities with a positive bias but the distribution has improved since the beginning of 2004.

Entities with either a positive outlook or CreditWatch with positive implications are a good leading indicator of actual upgrades. The proportion of positive listings rose to 12.8% on March 8 2005 from 6.8% on December 31 2003, while the proportion of negative listings fell to 20.0% from 29.2%.

The improvement in credit quality is the result of an expanding economy and very strong corporate profitability. The economy continues to grow at a solid pace, with real GDP up 4.4%

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree