Bangkok--21 Oct--Standard & Poor's
The number of global fallen angels increased by two since our last report to 30 (through Oct. 6), while the number of potential fallen angels decreased by two to 40, said an article published today by Standard & Poor's Global Fixed Income Research, titled "Potential Fallen Angels In The U.S., Europe, Emerging Markets, And Other Developed: Total Declines By Two As Fallen Angels Count Rises By Two."
"The 30 fallen angels accounted for US$230.7 (?169.4) billion in rated debt," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "This total is significantly more than the US$134.1 (?99.8) billion in rated debt attributable to the 29 rising stars (issuers upgraded to investment grade) that have emerged so far this year."
The global tally of potential fallen angels declined to 40 as of Oct. 6, a decrease of two from our most recent report. These issuers have a total of US$315.1 (?231.3) billion in rated debt. Potential fallen angels are issuers rated 'BBB-' with either negative outlooks or ratings on CreditWatch with negative implications. The last time the potential fall angel count fell below 40 was in May 2008.
We added four entities to the potential fallen angels list: Franz Haniel & Cie GmbH, Italcementi SpA, Colbun S.A., and Transocean Inc. We also added two fallen angels since the previous report: Controladora Mabe S.A. de C.V. and Buzzi Unicem SpA.
"Europe has overtaken the U.S. with the highest number of new fallen angels for the year, with 15 entities for Europe versus 14 entities for the U.S.," said Ms. Vazza. Banks lead the list of potential fallen angels with nine issuers. Five of these banks are based in the Republic of Portugal, which is also on the list of potential fallen angels. Sovereigns represent five of our potential fallen angels but have nearly triple the amount of banks' rated debts at US$187.7 (?137.8) billion.
Portugal remains the largest potential fallen angel this month, with US$112.1 (?82.3) billion in rated debt.
Thirteen of the companies on the potential fallen angels list are constituents of various Standard & Poor's indices.
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
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Media Contact:
Mimi Barker, New York (1) 212-438-5054,
[email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760