Bangkok--14 Nov--Standard & Poor's
Two new issuers have crossed over to investment grade from speculative grade since last month, according to an article published today by Standard & Poor's Ratings Services. The article, which is titled "Global Potential Rising Stars," says that 26 issuers have crossed over to investment grade in the year to date. This is the lowest since 2003 and well below the 44 issuers that crossed over in the same period last year.
As of Nov. 9, 2006, 29 rated entities globally were best placed to acquire rising-star status, three fewer than the number reported in October but five more than the count one year ago. Together, these 29 entities constitute US$38.5(?29.9) billion in rated debt.
Globally, the cumulative count of fallen angels continues to outpace rising stars by a margin of 14 entities (as of Nov. 9), which is a reversal of the pattern seen in 2004 and 2005. The U.S. was a precursor to the global trend, with fallen angels first exceeding rising stars in 2005. The 26 entities that crossed over to investment grade from speculative grade in the year to date have total rated debt worth US$44.5 (?34.5) billion.
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 15%. In the U.S., the positive bias--at 12%--is lower than the global share, having crested slightly earlier in the fourth quarter of 2005. "Looking ahead, rising star activity should continue to decelerate with the anticipated turn in the credit cycle," said 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 in the past two years."
Globally, sectors displaying the highest count of potential rising stars included utilities and banks with five entities each, insurance with four entities, and capital goods with three entities.
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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