Bangkok--23 Aug--Standard & Poor's
Standard & Poor's has releases its latest "Downgrade Potential Across Credit Grades And Sectors," report, which says the number of entities at risk of potential downgrades reached 653 in mid-August, 11 fewer than the number reported last month, but still roughly in line with the average of 652 in the year to date.
Of the total, 85% of the entities at risk of downgrades are based in the U.S. or Europe, with the former accounting for the lion's share of 68%. Automotive, media and entertainment, and telecommunications have the highest ratio of issuers with a negative bias relative to their respective total rated universe. These sectors—the same as a 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, consumer products, and retail/restaurants), 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," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group.
Of the 653 companies at risk for potential downgrades globally, 60% are speculative grade, with those rated 'B+' most vulnerable to downgrades at 123 companies (19% of total).
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, 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 (1) 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 financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 7,500 employees, including wholly owned affiliates, located in 21 countries. 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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