Bangkok--21 Oct--Standard & Poor's
Standard & Poor's Ratings Services upgraded four issuers to investment grade from speculative grade since our most recent report, said an article published today by Standard & Poor's Global Fixed Income Research, titled "Potential Rising Stars In The U.S., Europe, Emerging Markets, And Other Developed: With Four Additions, Rising Stars Are Catching Up To Fallen Angels."
This brings the total number of rising stars in 2011 (through Oct. 6) to 29--one less than the total number of fallen angels this year. The number of issuers that have the greatest potential for upgrades to investment grade is 16, a decrease of one since last month.
"The decrease in potential rising stars implies that the number of rising stars may slow through the rest of the year," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. The 29 rising stars in 2011 account for US$134.1 (?99.8) billion in rated debt. This is significantly less than the US$230.7 (?169.4) billion in rated debt attributable to the 30 fallen angels (issuers downgraded to speculative grade) so far this year.
The four new rising stars are Mondi Group, Pernod Ricard S.A., the Republic of Turkey, and AES CHIVOR & CIA S.C.A. E.S.P. (AES Corp.). The AES Corp., the parent of AES CHIVOR & CIA S.C.A. E.S.P., remains rated 'BB-'. With the addition of the Republic of Turkey, the rising stars' debt amount has nearly doubled from US$73.8 (?53.5) billion to US$134.1 (?99.8) billion. The rising stars are spread out fairly evenly across the subsectors; each subsector accounts for one or two issuers.
Potential rising stars account for US$68.8 (?50.6) billion in rated debt. We define potential rising stars as entities that are positioned for upgrades to investment grade: currently rated 'BB+' with either positive outlooks or ratings on CreditWatch with positive implications. "The number of potential rising stars decreased by one to 16--our lowest total since January," said Ms. Vazza. "Mondi Group is the only new rising star that was on our list of potential rising stars last month."
We added two issuers to our list of potential rising stars since our last report and removed three. The Republic of Indonesia remains the largest potential rising star, with US$51.1 (?37.6) billion in rated debt.
The count of entities most at risk of downgrades to speculative grade (potential fallen angels) is 40, with rated debt worth US$315.1 (?231.3) billion.
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