JacobH wrote:I may not have been paying enough attending in my statistics lessons but surely if you say the outlook (meaning the likelihood of change) is negative, then you mean that it has already changed? And are “Speculative grade” ratings really known as either ‘“High Yield” or “Junk”’, without irony?
It seems that you were paying plenty of attention. Market participants treat a directional outlook (positive or negative) as a fractional move in rating.
But sometimes companies being taken over have a non-directional ‘events might move this up or down’ outlook, which doesn’t quite fit the same model.