Bangkok--2 May--Standard & Poor's
The number of entities poised to benefit from upgrades reached 391 in April, three more than the number reported in March and 55 more than 12 months ago, according to an article published Friday, April 27, 2007, by Standard & Poor's. The report, titled "Upgrade Potential Across Credit Grades And Sectors," states that the number of both potential bond downgrades and potential bond upgrades rose in April, temporarily reversing the declining trend that has been in place during the previous three months.
"Financial companies 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," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Within nonfinancials, high technology; aerospace and defense; and metals, mining, and steel sectors appeared especially well placed."
The highest potential for upgrades were issuers rated 'B+' and 'B', comprising 14% each of total potential upgrades. Of the total, 125 companies are members of various Standard & Poor's equity indices.
Ms. Vazza added, "The trend of potential bond upgrades attests to the continued strength and benevolence in momentum at this late stage of the credit cycle. 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. Furthermore, a rising appetite for debt-financed M&As could constrain credit quality improvement."
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] . Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com ; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760