Standard & Poor's is unlikely to upgrade its ratings on nonbank commercial lenders over the next two years because increased competition for both secured and asset-based credit facilities has led to looser underwriting standards.

Many of the U.S. nonbank commercial lenders rated by S&P have moderately loosened their credit standards over the last year, which allows “for higher borrower leverage, and lowers the yields on new originations,” the ratings agency stated in a report published Thursday.

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