Group 1 - The core viewpoint of the article highlights the adjustment of ratings for convertible bonds in the first half of 2025, indicating a downward trend in ratings with a decrease in the number of downgrades compared to the previous year [4][8]. - In the first half of 2025, 40 convertible bonds experienced rating downgrades, which is a 16.67% decrease year-on-year, with no upgrades reported [4][5]. - The majority of downgraded convertible bonds had initial ratings of AA- or below, indicating a concentration of lower-rated bonds in the market [5][6]. Group 2 - The issuers of downgraded convertible bonds are primarily private enterprises, with 37 out of 39 downgraded issuers being private companies, mainly in the basic chemical and computer industries [7][8]. - The financial health of these issuers has deteriorated, with declining revenues and gross margins, increased operational costs, and weakened cash flow, leading to heightened short-term repayment pressures and liquidity risks [8]. - Governance and other risks have also escalated, with issues such as high pledge ratios of major shareholders, frequent changes in control, and legal challenges affecting the stability of these companies [8].