Bangkok--7 Dec--Standard & Poor's
Standard & Poor's Global Fixed Income Research published its latest "Stress In Corporate America" report today, titled "Stressed Sectors In Corporate America: Despite Some Positive Economic Numbers, Headwinds Remain For The Three Most Stressed Sectors."
In the report, we use three of our research publications--weakest links, potential bond downgrades, and the distressed monitor--to identify and spotlight U.S. sectors we believe are currently subject to the highest levels of credit stress.
"The media and entertainment, oil and gas, and retail and restaurant sectors were the most troubled sectors in the U.S. as of Nov. 14, 2011," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "Despite the strong start to the year-end holiday shopping season, the sluggish consumer demand and high unemployment rate continue to weigh on the three most stressed sectors." These sectors had the highest levels of risk among our lists of distressed companies (speculative-grade companies with securities trading in excess of 1,000 basis points [bps] above U.S. Treasuries), weakest links (companies rated 'B-' or lower with negative outlooks or ratings on CreditWatch with negative implications), and potential bond downgrades (investment-grade or speculative-grade companies with negative outlooks or ratings on CreditWatch negative).
"We identified 119 companies in these three sectors that meet at least one of the criteria described above," said Ms. Vazza. "Over the past 12 months, downgrades accounted for 64% of all rating actions in the retail and restaurant sector, 49% in the media and entertainment sector, and 32% in the oil and gas sector. In comparison, 45% 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