AAA Rating Is a Rarity in Business

The New York Times reports:

In the early 1980s, around 60 companies had AAA credit. By 2000, the number of AAA companies was about 15. Today just four corporations— Automatic Data Processing, Exxon Mobil, Johnson & Johnson and Microsoft — can claim those once-coveted three initials. (Five big insurers and several government affiliated organizations can too.)

Analysts say corporate buyouts and acquisitions accelerated the trend. Many AAA companies lost their ratings when they were taken over and their new owners loaded them with cheap debt to help pay for the deal. Other strategic decisions also triggered downgrades.