Bangkok--3 Oct--Standard & Poor's
The number of entities poised to benefit from potential upgrades continued to increase, reaching 383 in September, according to a report released today by Standard & Poor's Ratings Services. The number marks a peak since the inception of this report.
The article, titled "Upgrade Potential Across Credit Grades And Sectors," states that the number of issuers poised to potentially benefit both from upgrades and downgrades has reached highs, in the limited history of these series, signaling a potential for greater ratings volatility. On a relative basis, the growth rate of potential bond upgrades has exceeded those of potential bond downgrades, though the absolute count of the latter exceeds the former. This trend is expected to reverse.
"Financials were generally better positioned for potential upgrades in September, with many segments displaying a high percentage of issuers listed with a positive bias," elaborated Diane Vazza, Managing Director and head of Standard & Poor's Global Fixed Income Research. Within nonfinancials, the high technology and oil and gas sectors appeared especially well placed.
In all of the above sectors, the proportion of issuers listed with a positive bias (i.e., a positive outlook or ratings on CreditWatch with positive implications) are currently at more elevated levels than have historically been recorded, highlighting the likelihood that companies within those sectors would be upgraded.
Since the last report, five sectors—banks, high technology, health care, oil and gas exploration and production, and sovereigns—have shown the largest gains in the number of companies that could be upgraded.
The highest potential for upgrades was seen among issuers rated 'B+', constituting 15% of total potential upgrades.
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 (212) 438-5054, [email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760