Bangkok--2 Mar--Standard & Poor's
The number of entities poised to benefit from upgrades declined to 383 in February, 15 fewer than the number reported in January but 51 higher than 12 months ago according to a report published today by Standard & Poor's. The article, which is titled "Upgrade Potential Across Credit Grades And Sectors," says that the highest potential for upgrades was seen among issuers rated 'B+', constituting 14% of total potential upgrades, and of the total, 128 companies are members of various Standard & Poor's equity indices.
"The number of both potential bond upgrades and potential bond downgrades has been declining in the past three months," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "On a relative basis, the growth rate of potential bond upgrades still outpaces its downgrade counterpart, though the absolute count of the latter exceeds the former."
Financials maintained their preeminent position among sectors most likely to benefit from upgrades (in line with previous months) and displayed a high percentage of issuers listed with a positive bias (i.e., a positive outlook or ratings on CreditWatch with positive implications). Within nonfinancials, integrated oil and gas, high technology and aerospace and defense appeared especially well placed. In these 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 these sectors will be upgraded.
Ms. Vazza added that "credit market conditions remain salutary, notwithstanding expectations that the roster of issuers expected to benefit from potential upgrades will gradually diminish as factors supportive of potential upgrade momentum weaken from peak levels."
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 Contact:
Diane Vazza, New York (1) 212-438-2760