Downgrades outnumbered upgrades for the sixth consecutive week, cumulatively exceeding upgrades by nearly 60% over the period. However, positive outlooks and CreditWatch placements were at least double the negative ones for the second week in a row. Downgrades mainly affected speculative-grade issuers, across 10 different sectors, including six issuers rated 'B-' or below and one new risky credit (an issuer in our 'CCC' category). Meanwhile, upgrades were in four sectors, mostly involving investment-grade issuers. Last week there were three defaults, each in a different sector and all due to distressed exchanges, bringing the year-to-date total to 55.