The number of positive rating actions or outlook revisions outnumbered negative ones again last week. Nine out of 10 upgrades were on speculative-grade issuers. However, we added a new fallen angel, bringing this year’s count to seven. There were three defaults last week, two of these were U.S. companies that completed distressed exchanges in which lenders will receive less than originally promised. Homebuilders and real estate replaced chemicals, packaging, and environmental services as the sector with the highest negative bias. Credit risk pricing improved as bond and CDS spreads tightened. Benchmark yields rose at the longer end while short-term rates remained broadly stable.