Per S&P Global, BBB fallen angels expected to decline sharply this year.
"The number of potential fallen angels (issuers at risk of downgrade to speculative-grade), and the debt they represent, continues to fall as the economic recovery takes hold and COVID-19 vaccinations roll out. For full-year 2021, we estimate $195 billion in 'BBB' category debt from nonfinancial companies in the U.S. and EMEA will be downgraded to speculative-grade--a 47% decline from 2020."
"In the first quarter of 2021, rising stars (issuers upgraded to investment-grade) outnumbered fallen angels (issuers downgraded to speculative-grade) as many sectors began rebuilding their credit metrics. Even with the recent rise in U.S. Treasury yields, financing conditions remain supportive for 'BBB' issuers as funding costs hold near all-time lows."