The number of rating actions declined last week, with rating activity net positive. Downgrades dropped to three, including one new risky credit (issuers in the ‘CCC’ rating category)—independent exploration and production company Canacol Energy Ltd. There were no defaults last week. The year-to-date total (27) is materially below this point last year (47). Credit pricing deteriorated last week, with corporate spreads widening across investment and speculative grades, leading the U.S. distress ratio to climb to 7.7%.