NEW YORK (S&P Global Ratings) Sept. 20, 2021--The outlook for the U.S. business and information technology (IT) services sector has improved materially because many of the issuers we rate are benefiting from the reopening of businesses, robust economic growth, and increased demand as the coronavirus pandemic subsides. While there are substantial variations in the pace of recovery in diverse industry segments, positive rating actions sharply outpace downgrades. Despite ongoing concerns around tight U.S. labor markets, wage inflation, supply-chain disruptions, and the spread of COVID-19 variants, the issuers we rate are increasingly confident that these issues are transitory. In addition, many issuers are using their improving cash flows or access to capital to fund capital spending, acquisitions, or shareholder distributions. The
