High yield credit quality worse by number, better by dollar value in second quarter, Moody's says

New York, July 7 - U.S. high-yield credit quality looked worse than the first quarter in terms of the number of changes but better by dollar value, according to Moody's Investors Service.

During the three months just completed, Moody's lowered the ratings on 75 issuers and upgraded 30 compared to 64 downgrades and 43 upgrades in the first quarter.

But the second quarter downgrades accounted for $54.2 billion of bonds and preferred stock versus the $35.5 billion of upgrades. That was an improvement from $96.2 billion of downgrades and $22.4 billion of upgrades in the first quarter.

Looking at the numbers another way, Moody's said upgrades accounted for 29% of rating changes by number in the second quarter compared to 40% in the first quarter but 40% by dollar value compared to 19% in the first quarter.

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