Bangkok--16 Feb--Standard & Poor's
Standard & Poor's Ratings Services upgraded 490 issuers and downgraded 435 in 2010. This is the first time that upgrades have outpaced downgrades by issuer count on a global basis since 1997, said an article published today by Standard & Poor's Global Fixed Income Research, titled "Upgrades Surpass Downgrades Globally In 2010, Though European Woes Continue."
"U.S.-based speculative-grade issuers were largely responsible for the increase in upgrades, contributing 51% of the year's total upgrades," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "In 2010, upgrades outpaced downgrades in all regions, except for Europe."
Europe had 112 downgrades worth $1,938.9 (?1,434.2) billion in rated debt and 60 upgrades worth $217.2 (?160.7) billion in 2010, yielding a downgrade ratio of 65%.
Europe currently has a negative bias of 24% (the total number of issuers with a negative outlook or ratings on CreditWatch with negative implications divided by the total number of issuers). That is significantly lower than the 39% negative bias in June 2009, but it's still above the long-term average.
"Despite Europe's troubles, the economies in the rest of the world are recovering. In 2010, global and U.S. negative bias dropped to 15.9% and 14.7%, respectively--their lowest levels of the decade," said Ms. Vazza. "The emerging markets and other developed regions also had negative bias levels that were below their long-term averages, at 12.3% and 16.5%, respectively, though they didn't reach record lows."
Upgrade activity increased significantly across most of the rating categories in fourth-quarter 2010, though the number of upgrades exceeded downgrades only in the 'BBB' through 'CCC' rating categories. In addition, the downgrade ratios for the investment-grade rating categories have declined to their historical averages on a trailing four-quarter basis, while the downgrade ratios for the speculative-grade rating categories are about 21% lower than their historical averages.
The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. 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 Contacts:
Diane Vazza, New York (1) 212-438-2760