Downgrade

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Downgrade

A negative change in ratings for a stock, or other rated security.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Downgrade

A change in the rating of a bond or other security in a downward direction. For example, a bond that had previously been rated AAA may be downgraded to AA. Downgrades are considered detrimental because they mean the ratings agency believes that the issuer of the security is less likely to be able to fulfill its obligations, such as coupon payments. A downgrade increases the cost of funds for the issuer because investors expect a higher return in exchange for the increased risk on the security. See also: Upgrade.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
In addition to these actions, Moody's has downgraded the long-term Counterparty Risk Assessment (CR Assessment) of BISB to B1(cr) from Ba2(cr).
GBP400.3 million secured bond (XS0987936076) downgraded to 'BBBsf' from 'BBB+sf'; Outlook Stable
- Long-term global foreign-currency deposit rating downgraded to Caa2 from Caa1, with negative outlook
Moody's has downgraded all banks' foreign-currency deposit ratings to
The downgrades were prompted by Lucent's long-term debt ratings being downgraded from B2 to Caa1 by Moody's on Nov.
It has downgraded Sul America S.A.'s (SASA) long-term local and foreign currency Issuer Default Ratings (IDRs) to 'B+'/Outlook Stable from 'BB-'/Outlook Negative.
Moody's Investors Service downgraded the ratings of five Egyptian banks on 14 February 2013.
Fitch Ratings has downgraded several Italian and French insurance companies.
20 April 2011 - Moody's downgraded yesterday the ratings on covered bonds issued by Spanish savings bank Caja de Ahorros del Mediterraneo (CAM).
MOODY'S INVESTORS SERVICE, NEW YORK, has downgraded the ratings of four subordinate classes in the ContiMortgage 1997-1 and 1997-2 subprime mortgage deals.
Williams (WMB) downgraded to Market Perform from Outperform at Bernstein with analyst Jean Ann Salisbury saying as delays in LNG starts and surprising growth from the SW Marcellus/Utica and Haynesville she pulled her bearish gas thesis of half-cycle breakeven gas forward.