Net positive rating trends in the first quarter will likely be tested as we now enter a period of heightened uncertainty. While upgrades outnumbered downgrades 2:1, over 60% of sectors saw an increase in negative bias in first-quarter 2025--averaging 2 percentage points (ppt)--and nearly all sectors ended the quarter with net bias below zero, meaning the net outlook for ratings is more negative than positive. Meanwhile, potential fallen angels outweigh potential rising stars by over 70% in a sign momentum has shifted downwards.