Bangkok--28 Jun--Standard & Poor's The number of entities at risk of downgrades remains at 617 in mid-June 2007, three less than reported in May and 30 fewer than the average of the past 12 months, according to an article published by Standard & Poor's. The report, titled "Downgrade Potential Across Credit Grades And Sectors," stated of the total number of entities, 69% are based in the U.S. and 15% are in Europe. "For the first time this year, retail/restaurants edged into the top-five sectors most at risk of potential downgrades, with 41 issuers represented globally," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Globally, the media and entertainment, automotive, consumer products, and telecommunications sectors have the highest ratio of issuers with a negative bias relative to their respective total rated universes, indicating that these sectors are potentially most vulnerable to credit-quality deterioration." Of the 617 companies at risk for downgrades globally, 63% have speculative-grade ratings, with those rated 'B+' most vulnerable to downgrades at 108 companies (18% of the total). U.S.-based issuers constituted 80% of the total speculative-grade issuer base. Many of the entities at risk of downgrades are in the consumer discretionary domain, where momentum is expected to decelerate. Ms. Vazza added, "The sectors poised for downgrades globally have been relatively consistent, with automotive, consumer products, telecommunications, and media and entertainment appearing consistently in our monthly potential downgrade reports since the beginning of the year. Downgrade pressure is felt predominantly among nonfinancials, which accounted for 94% of the total issuers." 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 (1) 212 438 5054 [email protected] Analyst Contacts: Diane Vazza, New York (1) 212-438-2760