Bangkok--15 Jan--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. The article, which is titled "Global Potential Rising Stars," says that for full-year 2006, 30 issuers crossed over to investment grade and have total rated debt worth US$50.2 (?38.7) billion. This is far fewer than the 51 issuers that crossed in 2005.
The metals/mining sector generated the highest number of rising stars in 2006, supported by exceptionally strong market conditions for miners and generally good market conditions for steelmakers and related sectors.
As of Jan. 9, 2007, 26 rated entities globally were best placed to acquire rising-star status, two fewer than the number reported in December but three more than the count one year ago. Together, these 26 entities constitute US$39 (?30.1) billion in rated debt.
"Financials ranked high on the list of potential rising stars," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Several emerging market banks--notably in India--were well placed to ascend to investment-grade status." U.S.-based insurance entities were also positioned strongly. By count, four U.S. utilities appeared on the potential rising star list, even though a difficult regulatory and political climate has added to recent uncertainties in Illinois and Maryland.
In terms of rated debt outstanding, the utility sector was again prominent with the highest amount of debt affected by potential upgrades. Other high-debt sectors included retail and restaurants and banks.
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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