Corporate debt defaults have surged to the highest level since the last financial crisis, say the latest reports, and the average credit rating for US companies is now lower than at any point in the last recession. The report by Fitch Ratings on Friday said that its ratings of American banks were cut from AA+ to AA because it was concerned about their exposure to subprime mortgages.
Corporate debt defaults have surged to the highest level since the last financial crisis, say the latest reports, and the average credit rating for US companies is now lower than at any point in the last recession. This has prompted some experts to suggest the US is in the early stages of a significant financial meltdown and the terminal phase of the largest debt bubble the world has ever witnessed.