As the summer heat picked up, defaults and distressed ratings cooled down.
Just two private equity-owned companies ended July on the default list, a noticeable fall from June, during which seven PE-backed companies ended the month on the list.
In all, only 15 PE portfolio companies received distressed ratings during the month of July 2020. That marks a significant decrease from June, when 34 total PE-backed companies received downgrades.
Source: The Buttonwood Tree, Moody’s, S&P
Distressed ratings are defined as an issuer credit rating of B- or lower with a negative outlook from S&P or a corporate family rating of Caa1 or lower with a negative outlook from Moody’s.
Fewer Defaults During July
Though four companies defaulted on loan payments during July, only two s…