Bangkok--1 Nov--Standard & Poor's
Standard & Poor's Ratings Services downgraded 94 issuers and upgraded 124 in third-quarter 2010, bringing the global downgrade ratio (downgrades as a proportion of total rating actions) to 43%. This ties with the second quarter of 2007 for the lowest downgrade ratio of the decade, said an article published Thursday, October 28 by Standard & Poor's Global Fixed Income Research, titled "Global Corporate And Sovereign Rating Actions: Third-Quarter 2010 (Premium)."
"After reaching its peak of 93% in first-quarter 2009, the global downgrade ratio has declined steadily, although at a faster rate than it did in the most recent economic recovery period starting in 2002," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research.
Among corporate issuers, Europe saw the largest decline in its downgrade ratio, to 41% in the third quarter from 70% in the second quarter, followed by the emerging markets, which declined to 46% from 58%. The other developed region (including Australia, Canada, Japan, and New Zealand) saw its downgrade ratio rise 14% to 59% in the same period, while the downgrade ratio in the U.S. increased to 42% from 36%.
"Global negative bias has also dropped, to 18% in third-quarter 2010," said Ms. Vazza. "This is one of the lowest levels on record and is near the all-time low of 17% seen in the third quarter of 2005." Negative bias is the total number of issuers with a negative outlook or ratings on CreditWatch with negative implications divided by the total number of issuers.
This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers to RatingsDirect on the Global Credit Portal at www.globalcreditportal.com and to RatingsDirect at www.ratingsdirect.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Mimi Barker, New York (1) 212-438-5054,
[email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760