Bangkok--10 Oct--Standard & Poor's
Standard & Poor's Global Fixed Income Research has published its latest "Stress In Corporate America" report, in which we use three of our research publications--weakest links, potential bond downgrades, and the distressed report--to identify and spotlight U.S. sectors we believe are currently subject to the highest levels of credit stress.
In light of sluggish consumer demand, a depressed construction market, and continued uncertainty about economic and credit market conditions, the media and entertainment, consumer products, and forest products/building materials sectors were, in our opinion, the most troubled sectors as of Sept. 29, 2011, according to the article published today, titled "Stress In Corporate America: The Slowing Economy Poses Risks To Recovery For The Three Most Stressed Sectors." These sectors had the highest levels of risk among our lists of distressed companies, weakest links, and potential bond downgrades.
"We identified 113 companies in these three sectors that meet at least one of the criteria," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "Of the 113 companies, 27 are on more than one list, indicating even higher vulnerability."
"Over the past 12 months, downgrades accounted for 54% of all rating actions in forest products and building materials, 49% in consumer products, and 46% in media and entertainment," said Ms. Vazza. "In comparison, 42% of rating actions for nonfinancial issuers were downgrades."
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