Positive rating actions and outlook changes greatly outnumbered negative ones last week, in line with the improving trend we've noted since February. Six defaults last week represented the highest number so far this year. This extends the elevated defaults trend, but we expect it to stabilize toward year-end. The one new rising star last week was Italian capital goods company, Ali Holding S.R.L. Higher financing costs are among the persistent risks. Last week, speculative-grade bond spreads and CDS spreads for North American corporates widened.