Bangkok--31 Jul--Standard & Poor's The number of entities at risk of downgrades globally has shown relative stability since the beginning of the year, clocking an average level that is still lower than the 2006 average, according to an article published on Thursday, July 26 by Standard & Poor's. The report, titled "Downgrade Potential Across Credit Grades And Sectors," stated that the number of entities increased to 621 in mid-July, four more than the number reported in June but 22 fewer than the average reported in the past 12 months. "The U.S. tops the list of potential bond downgrades, in part, because of greater vulnerability and greater maturity of the credit cycle but also, in part, given a larger rated population," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Of the total number of entities, 68% are based in the U.S. and 16% are in Europe." The highest ratio of issuers with a negative bias relative to their total rated universe are concentrated in the media and entertainment, consumer products, and automotive sectors, indicating that these sectors are potentially most vulnerable to credit-quality deterioration. These sectors have consistently appeared in our monthly potential downgrade reports since the beginning of the year. Weakness in the consumer discretionary domain is not surprising, owing to a consumer slowdown, a housing decline, and high energy prices. Ms. Vazza added "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, 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] Update Profile: If you would like to update your information or change the sectors you receive press releases on, please click here. Unsubscribe: If you do not wish to receive further E-mails on any topic, please click here. -MKTFI:enUS: UcjJWzFM47QhX7XpQIMN10 4MoGAteiJ144MoGAteiJ14-