Bangkok--24 Jul--Standard & Poor's We project that $74 billion will mature or be called in the last two quarters of 2007, according to an article published by Standard & Poor's. (This estimate is based on a universe of $2.91 trillion in corporate debt rated by Standard & Poor's Ratings Services as of June 29, 2007.) The article, which is titled "Refunding Outlook For U.S. Corporate Bonds," says that for 2008, we estimate that $246 billion in corporate debt could be refunded. (That estimate is based on maturity schedules for all U.S. fixed and floating corporate bonds rated by Standard & Poor's and our call forecast that uses only plain vanilla fixed-rate corporate bonds rated 'BB-' or higher.) "Based on the current universe, we expect that maturing debt will spike in 2011," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "This will happen as 10-year debt comes due that was issued during the issuance bubble in 2001." In 2011, we expect $288 billion will mature, $75 billion of which is speculative-grade debt. Although rate cut projections have been moved to early to mid 2008, we expect that the 10-year treasury will edge upward to 5.36% by the end of 2007 and increase to 5.5% in the first half of 2008. The treasury yield curve will continue to steepen for the next eight quarters, as long-term rates rise and short-term rates eventually descend (which we expect to happen in the second quarter of 2008). U.S. corporate bond issuance has been on a record pace this year, with $568 billion in debt issued in the first half of the year versus $502 billion in the first half of 2006 and $350 billion during the same period in 2000. Of the $568 billion in new issuance, $485 billion was of investment grade, while $82 billion was of speculative grade. Ms. Vazza noted that, "The low interest rate environment has prompted firms to prefer long-term debt, as 32% of new issuance had a maturity of 10 years or greater." 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 Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 21 countries. Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com. Key Contacts: Americas Media Relations: (1) 212-438-6667 media_ [email protected] Americas Customer Service: (1) 212-438-7280 [email protected]