Bangkok--8 Jul--Standard & Poor's
The number of entities poised for upgrades decreased by one from our most recent report to 288 as of June 28, said an article published by Standard & Poor's Global Fixed Income Research, titled "Global Potential Upgrades: Total Decreases To 288."
"The count of potential upgrades has increased steadily since the low of 136 in March 2009 and is up from 266 in June 2010," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "Since November 2010, the number of potential upgrades has remained between 273 and 289."
We define potential upgrades as issuers that have either positive outlooks or ratings on CreditWatch with positive implications across rating categories 'AA+' to 'B-'.
Of the issuers that were on our list of potential upgrades last month, Standard & Poor's Ratings Services raised its ratings on 26, or 9% of the total. Six of these issuers remain on the list for further potential upgrades.
"The chemicals, packaging, and environmental services sector was the most active this past month. We added five issuers from this sector to the list of potential upgrades and removed another five," said Ms. Vazza. "Two acquisition announcements led to the addition of two companies to the list and the removal of another two."
The composition of the potential upgrades list has changed slightly. The number of issuers with ratings on CreditWatch positive increased to 45 from 43, while the number of entities with positive outlooks declined to 243 from 246.
"The ratio of issuers with positive outlooks to those with ratings on CreditWatch positive decreased slightly, to 5.4 to 1 from 5.7 to 1," said Ms. Vazza. "A decrease in this ratio implies that it may take less time for the upgrades to occur."
The sectors that account for the largest proportions of the potential bond upgrades list are high technology and media and entertainment, with 24 issuers each.
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