Bangkok--23 Aug--Standard & Poor's
The latest "Global Potential Rising Stars" report from Standard & Poor's Ratings Services says four new issuers have crossed over to investment grade from speculative grade in the past month.
Three of the four issuers were in our list of potential rising stars in July. The number of issuers poised to ascend to investment grade has been increasing since April 2006 but still remains below its year-ago level.
As of Aug. 18, 2006, 29 rated entities globally were best placed to acquire rising-star status, the same as the number reported in July but four fewer than the count a year ago. Together, these 29 entities constitute US$49.3 (?38.5) billion in rated debt.
Though there are no serious signs of weakness, the proportion of entities listed with a positive bias across the entire ratings spectrum has stabilized at 12%. "Looking ahead, rising star activity should decelerate with the anticipated turn in the credit cycle," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Indeed, the current number of rising stars in the year to date already lags the level recorded last year."
Globally, sectors displaying the highest count of potential rising stars included utilities with five entities; capital goods with four entities; and banks, oil and gas exploration and production, and insurance with three entities each.
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.
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Mimi Barker, New York (1) 212-438-5054, [email protected]