7 convertible bond ratings downgraded, credit risk needs to be cautious

As the disclosure of the 2024 annual reports comes to an end, rating agencies will focus on the credit outlook of convertible bonds. According to Wind data statistics, 72 convertible bonds have updated their latest credit ratings so far this year. Most of the convertible bonds have maintained their previous ratings unchanged, but there are also a few convertible bonds that have had their ratings downgraded. The downgrade of convertible bond ratings is mainly due to flaws in the company's fundamentals, including performance losses, rising debt pressure, deteriorating credit conditions, and delisting of shares. Industry insiders point out that the rating of convertible bonds is an important indicator for assessing their credit risk, and has significant reference value for investments. A high rating for convertible bonds means that the issuing company has good credit status and low default risk; a low rating for convertible bonds often means a relatively higher risk of default.