Changing credit ratings for three North American issuers in Q3 2025 pushed upgraded debt levels above downgraded debt in its global corporate portfolio, Fitch Ratings has noted – despite the number of crossover issuers being equal across the quarter.
In Q3, Fitch recorded three North American rising stars to two North American and one LatAm fallen angel. However, the three North American firms each held more than US$100 billion in debt – pushing upgraded net global debt to US$84.5 billion.
This is the highest level of upgraded global net debt since Q3 2021.
The largest downgrades of the quarter were also North American, with chemical producer Celanese and utility firm Innergex Renewable Energy leading the fallen angels.
Fitch has added four issuers to its potential fallen angels list, rating them as BBB- with a negative outlook. Polaris has tumbled in a poor macro and sector environment, while chemical producer Alpek and electronics distributor Avnet have also joined the watchlist. Media and entertainment company Paramount Skydance Corporation has been assigned a BBB-/negative rating.
On the other side, four real estate investment trusts – Vornado Realty, Vornado Realty Trust, SL Green Realty and SL Green Operating Partnership – and chemical company Solstice Advanced Materials have been flagged as potential rising stars, receiving BB+/positive ratings.
While not yet recorded as potential falling angels or rising stars, Fitch named six A-rated issuers as at risk of BBB re-ratings. European spirits maker Diageo, which has more than US$20 billion in debt, has been flagged, as have North American utilities companies Alectra and the Connecticut Light and Power Company, along with its subsidiaries.
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