Bangkok--30 Nov--Standard & Poor's
The number of entities poised to benefit from potential upgrades climbed to 406 in November, 34 more than the number reported a month earlier, according to a report released by Standard & Poor's Ratings Services. The increase is partially attributable to expanded issuer coverage.
The report, titled "Upgrade Potential Across Credit Grades And Sectors," states that the number of issuers poised to potentially benefit from upgrades has reached highs in the limited history of these series, but should decline in line with decelerating economic fundamentals. "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," explained Diane Vazza, Managing Director and head of Standard & Poor's Global Fixed Income Research.
Financials were generally better positioned for potential upgrades in line with previous months, with many segments displaying a high percentage of issuers listed with a positive bias (i.e., a positive outlook or ratings on CreditWatch with positive implications). Within nonfinancials, high technology and integrated oil and gas appeared especially well placed.
Sovereigns were also well placed, marked by an overall current positive bias of 17%, much higher than the historical positive bias of 10%.
In all of the above sectors, the proportion of issuers listed with a positive bias is currently more elevated than has historically been recorded, highlighting the likelihood that companies within those sectors will be upgraded.
Since the last report, seven sectors—banks, homebuilders/real estate companies, chemicals, packaging and environmental services, and high technology—have shown the largest gains in the number of companies with upgrade potential.
The highest potential for upgrades was seen among issuers rated 'B+', constituting 14% 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 (1) 212-438-5054;
[email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760