Bangkok--25 Jul--Standard & Poor's
Standard & Poor's Ratings Services' latest "Downgrade Potential Across Credit Grades And Sectors" report states that the number of entities at risk of potential downgrades reached 664 in mid-July, one less than the number reported in June, which was the highest level since the inception of this report 11 months ago.
"Of the total, 84% of the entities at risk of downgrades are based in the U.S. or Europe, with the U.S. accounting for the lion's share at 67%," explained Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Automotive, telecommunications, and media and entertainment have the highest ratio of issuers with a negative bias relative to their respective total rated universe," Ms. Vazza added. "These sectors—the same as one month ago—are therefore most vulnerable to credit quality deterioration."
Many of the entities at risk of potential downgrades are in the consumer discretionary domain (automotive, media and entertainment, retail/restaurants, and consumer products), where pressures have been building (owing to greater consumer indebtedness, growing uncertainty about the housing outlook, and high energy prices) and momentum is expected to decelerate.
Of the 664 companies at risk for potential downgrades globally, 59% are speculative grade with the 'B+' rating designation most vulnerable to downgrades at 122 companies (18% of total).
The report is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit research and analysis system, at www.ratingsdirect.com . If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected] . The report is also available at www.sandp.com/gfir , listed under Global Fixed Income Research. If you have not previously registered with the site, you will need to do so to access this material. Registration requires minimal information and is free. Members of the media may request a copy of this report by contacting the media representative name provided.
Media Contact:
Mimi Barker, New York (212) 438-5054,
[email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With more than 6,300 employees located in 21 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com .
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