Global potential rising stars are defined as entities that are rated 'BB+' with either a positive outlook or with ratings on CreditWatch with positive implications.
Meanwhile, the count of entities about to cross over in the opposite direction (potential fallen angels) is elevated at 57 issuers, unsurprising given crossover credits' generally corroborative relationship with the broader economy.
The two new rising stars added since last month bring the year-to-date total for rising stars to 38 issuers, affecting debt worth US$168.88 (?132.06) billion, more than one-third of which is attributed to the change in the sovereign rating on the Federative Republic of Brazil. This compares with a tally of 36 issuers this past year, with total rated debt worth US$71.81 (?56.11) billion, according to the article, titled "Global Potential Rising Stars (Premium)." Current potential rising stars constitute US$11.49 (?8.98) billion in rated debt.
"Fallen angels exceed rising stars by a margin of four," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "And the volatility in the credit markets, coupled with overall downward pressure, especially noted by the sharp decline in potential rising stars and general malaise regarding global economic and credit circumstances, supports our belief that crossover credit quality is more strongly poised for credit deterioration rather than improvement."
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Media Contact:
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Analyst Contacts:
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