S&P saw more ratinsg upgrades than downgrades for the first time since 1997. In 2009 ratings downgrades occurred three times as often as upgrades. Moody's has a similar profile of upgrades to downgrades.
The reason is cash. Companies are holding $1.7 trlllion in cash, the most in 70 years. Profits are also higher which translates to upgrades. Most upgrades are with lower rated companies as default rates fell significantly.
Good news of debt-holders, but what will these firms do with the cash?
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