Bangkok--25 Oct--Standard & Poor's
The number of entities at risk of potential downgrades reached 663 in mid-October, according to an article published today by Standard & Poor's Ratings Services. The article, which is titled "Downgrade Potential Across Credit Grades And Sectors," says that this is five fewer than the number reported last month, 11 more than the average of the last 12 months. Of the total number of entities, 83% are based in the U.S. or Europe, with the former accounting for the lion's share (67%).
"Many of the entities at risk of potential downgrades are in the consumer discretionary domain, where momentum is expected to decelerate," observed Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. (Examples of this domain include automotive, media and entertainment, consumer products, high technology and retail/restaurants.) "These sectors will feel increased pressure as a result of greater consumer indebtedness, growing uncertainty about the housing outlook, and high energy prices," Ms. Vazza added.
Of the 663 companies at risk for potential downgrades globally, 59% are speculative grade, with those rated 'B+' most vulnerable to downgrades at 123 companies (19% of the 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