A key indicator of the ability of financially distressed companies to raise money improved in May, but not because these borrowers are any better off.

Moody’s Liquidity Stress Index, which measures the percentage of companies with the lowest speculative-grade liquidity rating (SGL-4), fell to 9.3% from 10.2% in April. But the drop was attributable to seven bankruptcies and the three distressed exchanges, which resulted in companies falling off the list..

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