Downgrade Potential Declines Slightly To 921 Issuers Globally, Article Says

Stocks and Financial Services Press Releases Monday September 28, 2009 09:28
Bangkok--28 Sep--Standard & Poor's

The number of global issuers poised for downgrades declined slightly this month, to 921 from 955 in August, largely as a result of materialized downgrades with assignments of stable outlooks. This reduction comes after record highs were reached nearly every month since January 2008, said an article published today by Standard & Poor's, titled "Downgrade Potential Across Credit Grades And Sectors (Premium)."

Potential downgrades are defined as entities that have either a negative outlook or ratings on CreditWatch with negative implications across rating categories 'AAA' to 'B-'.

"The pace of downgrades as a proportion of total rating actions has begun to normalize, with the quarterly downgrade-to-upgrade ratio, both in the U.S. and globally, declining to roughly 3 to 1 so far in third-quarter 2009," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "This is on par with the average of the past 20 years and is less than one-fourth the ratio seen two quarters ago."

Despite materialized downgrades throughout the sectors, banks displayed the highest downgrade propensity, closely followed by sectors such as media and entertainment, insurance, consumer products, and transportation.

Within Standard & Poor's rated universe, 34% had either a negative outlook or ratings on CreditWatch negative as of Sept. 22, 2009--up from 26% at the end of 2008 and 14% at the end of 2007.

The standard version of this article is part of our standard Global Fixed Income Research content. The premium version contains expanded analysis of the article's most significant points, typically broken out by sector and region. Also in the premium version are in-depth charts and tables, the underlying data of which are available for download. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Ratings in the left navigation bar, select Find a Rating. Members of the media may request a copy of this report by contacting the media representative provided.

Media Contact:
Ana Sandoval, New York (1) 212-438-5095, ana_sandoval@standardandpoors.com
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ relations@standardandpoors.com
Americas Customer Service: (1) 212-438-7280
research_request@standardandpoors.com

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