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Illustration: Sarah Grillo/Axios

The number of companies around the world that had their credit ratings downgraded from investment grade to speculative grade — so-called fallen angels — hit the lowest level in 23 years, S&P Global reported Thursday.

Context: There were only 19 fallen angels last year, which marked the fourth consecutive year the number has declined, the longest stretch on record.

But, but, but: While BBB-rated bonds grew to a record 50% of all outstanding investment grade U.S. corporate debt last year, downgrades fell to a record low 0.3%, data from BofA Global Research found.

  • The number of “zombie companies,” or businesses with interest payments higher than their annual earnings, has reached a level not seen since the global financial crisis, BofA estimated.
  • And the percentage of public companies in the U.S. losing money over 12 months has risen close to 40%, its highest level since the late 1990s outside of post-recession periods, WSJ reported.

Why it matters: Many companies appear to be holding their investment grade ratings by adding significantly to their debt load.

  • "Last week, researchers at the Federal Reserve Bank of New York also warned that downgrades to the flood of bonds sitting at the lower end of the investment-grade spectrum pose a financial stability concern," MarketWatch's Joy Wiltermuth writes.
  • "In October, the International Monetary Fund said that some $19 trillion of corporate debt globally could be at risk in a recession that is half as severe as the global financial crisis, in its annual global financial stability report."

On the other side: The global tally of companies with credit ratings upgraded to investment grade from speculative grade was 22 in 2019 — the lowest in 10 years.

Go deeper: S&P 500 companies expect declining earnings and profit margins for Q4

Go deeper

Updated 44 mins ago - Health

California surpasses 50,000 COVID-19 deaths

A man prepares a funeral arrangement in in Los Angeles, California, Feb. 12. Photo: Mario Tama/Getty Images

California's death toll from COVID-19 surpassed 50,000 on Wednesday, per Johns Hopkins data.

The big picture: It's the first state to record more than 50,000 deaths from the coronavirus.

2 hours ago - Technology

Facebook bans Myanmar military

A protester holds a placard with a three-finger salute in front of a military tank parked aside the street in front of the Central Bank building during a demonstration in Yangon, Myanmar. Photo by Aung Kyaw Htet/SOPA Images/LightRocket via Getty Images

Facebook said on Wednesday it would ban the rest of the Myanmar military from its platform.

The big picture: It comes some three weeks after the military overthrew the civilian government in a coup and detained leader Aung San Suu Kyi, causing massive protests to erupt throughout the country. Military leaders have been using internet blackouts to try to maintain power in light of the coup.

It's harder to fill the Cabinet

Data: Chamberlain, 2020, "United States of America Cabinet Appointments Dataset" Chart: Will Chase/Axios

It's harder now for presidents to win Senate confirmation for their Cabinet picks, an Axios data analysis of votes for and against nominees found.

Why it matters: It's not just Neera Tanden. The trend is a product of growing polarization, rougher political discourse and slimming Senate majorities, experts say. It means some of the nation's most vital federal agencies go without a leader and the legislative authority that comes with one.