By James Faunce | November 16, 2017
As the cycle progresses further into its late stages, upward rating migration may continue due to improving fundamentals, operational enhancements, and active balance sheet repair. After spending a good portion of the past year repairing their balance sheets through asset sales and debt pay downs, energy companies have been the prime beneficiaries of positive rating actions in 2017. According to Barclays, of the credits that have seen upgrades into investment grade year to date, a full 60% of the volumes have occurred in the energy sector. Credits outside the commodity related sectors have only represented 30% of total volumes and those were largely driven by credit specific factors.