Bangkok--28 Feb--Standard & Poor's
Standard & Poor's Ratings Services downgraded four issuers to speculative grade from investment grade in February, raising the number of global fallen angels to six in 2011, said an article published today by Standard & Poor's Global Fixed Income Research.
Sovereign rating actions generated the four most recent fallen angels, according to the article, titled "Global Fallen Angels: Sovereign Downgrades Result In Four New Fallen Angels."
"The six total fallen angels in 2011 (through Feb. 14) account for US$75.05 billion, or ?55.41 billion, in rated debt," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "This is significantly more than the US$9.79 billion, or ?7.25 billion, in rated debt attributable to the five rising stars--issuers upgraded to investment grade--that have emerged so far this year."
Four fallen angels were downgraded to speculative grade from investment grade since our most recent report. The Hashemite Kingdom of Jordan was downgraded to speculative grade, which resulted in the ratings on Arab Bank PLC being lowered to 'BB+'. In addition, the downgrade of Ireland to 'A-' and the lowering of its BICRA score triggered downgrades to speculative grade for both the Bank of Ireland and Allied Irish Banks PLC.
The global tally of potential fallen angels is 52, an increase of five from our most recent report, but down from 72 in February 2010. These issuers have a total of US$254.9 (?188.2) billion in rated debt. Potential fallen angels are issuers rated 'BBB-' with either a negative outlook or ratings on CreditWatch negative.
Banks and consumer products are the sectors with the most issuers on the potential fallen angels list. Each sector has seven potential fallen angels. Utilities follows closely, with five entities.
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