Situation Room: June IG ratings: weaker

Research evidence excerpt

Situation Room: June IG ratings: weaker

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Situation Room

June IG ratings: weaker

June IG ratings: weaker 06 July 2026

The pace of US IG net rating upgrades slowed in June, driven mostly by Comcast. The Credit Strategy

net ratings change was a +$23bn net upgrade (upgrades less downgrades, notional * United States

notches including watch/outlook), down from a strong +$142bn net upgrade in May. Cross Product

Agencies put Comcast ratings on watch negative following the plans to spin off Yuri Seliger Credit Strategist

NBCU/Sky (see Comcast Corp: Cable unsubscribes from Media report). That action was BofAS

worth -$51bn (notional * notches). Excluding Comcast, the net rating upgrade in June +1yuri.seliger@bofa.com646 855 7209

would have been $74bn – above the LTM average pace of IG upgrades of +$38bn. Away Sohyun Marie Lee

from Comcast, Healthcare and Tech led the net upgrades in June. Credit Strategist

BofAS

Rating activity: more balanced +1sohyun.lee@bofa.com646 855 7217

Gross rating activity for IG corporate issuers (upgrades + downgrades) remained

elevated in June at $166bn, down from a strong $201bn in May (Exhibit 5). The share of

upgrades was balanced in June at 57%, down from a high 85% in May (Exhibit 6). In this report

Outlook: positive Daily supply snapshot

The outlook for future rating actions turned more positive in June. The share of IG index Daily dealer inventories update

bonds on a positive outlook / watch increased to 2.6% in June and remains well above

the 1.6% median since 2010 (Exhibit 7). The share on a negative outlook / watch was Daily HG fund flows

2.9% in June, up from 2.5% in May but low historically (Exhibit 8).

Daily foreign demand tracker

Exhibit 1: The pace of net IG rating upgrades slowed in June