Corporate defaults soar as credit quality slides

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Corporate credit quality in Western Europe is set to continue declining in 2002, in spite of downgrades already hitting record levels last year, according to a report by Moody’s Investors Service.

The corporate sector suffered 123 downgrades last year against just 16 upgrades, representing $458.2 billion and $24.1 billion of debt respectively. Last year the telecoms industry alone accounted for 37% of all corporate sector downgrades. Deterioration this year is likely to be more widespread

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