Bangkok--7 Feb--Standard & Poor's.
In 2007 year to date, three fallen angels—issuers that were downgraded to speculative grade ('BB+' and lower) from investment grade ('BBB-' and higher)—were recorded, affecting rated debt worth US$11.7 (?9) billion, according to an article published today by Standard & Poor's. The article, which is titles, "Global Potential Fallen Angels," says that this is an increase of three issuers from last month's report, and all three additions were from the U.S.
"Rising stars in year-to-date 2007 exceed fallen angels by a margin of three entities, even though the volume of debt affected by fallen angels was greater," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "In 2006, the balance of crossover activity had flipped, with fallen angels exceeding rising stars by a margin of 19 entities. The sectors most vulnerable to generating fallen angels by count are utilities, high technology, media and entertainment, and homebuilders/real estate companies."
The three fallen angels recorded so far in 2007 belong to consumer products, health care, and oil and gas exploration and production sectors. Globally, 41 entities are at risk of becoming fallen angels, with rated debt totaling US$78 (?59.9) billion. This is one less than last month and five fewer than in February 2006.
Mz. Vazza added "The volume of debt affected by fallen angel activity has increased in 2007. The US$11.7 billion affected year-to-date debt is already 16.7% of the total US$70.1(?53.9) volume attributed to fallen angel downgrades in 2006."
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