Second-quarter upgrades outpaced downgrades.

Position::News & Numbers

United States public finance upgrades exceeded downgrades in the second quarter of 2016, with 83 upgrades versus 43 downgrades, according to a Fitch Ratings report. Roughly 60 percent of the par value of downgrades this quarter were entities related to Puerto Rico, followed by another 25 percent related to the downgrade of the State of Connecticut. Downgrades in the second quarter represented 4.9 percent of all rating actions, while upgrades were 9.5 percent of all rating actions.

Positive rating outlooks increased in the second quarter of 2016, to 114 from 10 in the second quarter of 2015, while negative rating outlooks decreased to 118 from 136 for the same timeframe. Negative rating watches increased to 22 from 21 in the first quarter of 2016, and...

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