Bangkok--9 Aug--Standard & Poor's A new study by Standard & Poor's Ratings Services confirms earlier findings that CreditWatch and rating outlooks provide powerful signals of future rating changes. The report, titled "CreditWatch And Rating Outlooks Provide Powerful Warning Signals," published yesterday on RatingsDirect, includes the first published analysis of CreditWatch performance for Structured Finance ratings. In recent years, ratings in this sector have experienced increased volatility, and market participants are more sensitive to potential rating changes. In this more volatile environment, CreditWatch placements have increased significantly, providing credit signals on the near-future movements of Structured Finance ratings. "Investors and other market participants who try to anticipate rating actions can use these indicators as valuable predictors of ratings behavior," said Standard & Poor's managing director Gail Hessol. CreditWatch listings and rating outlooks add meaningful incremental information to the analysis of credit migrations. One key finding in the report was that CreditWatch placements and, to a lesser degree, rating outlooks strongly signal future rating changes. Sixty-six percent of CreditWatch listings with positive implications resulted in an upgrade; 59% of CreditWatch listings with negative implications resulted in a downgrade. Another key finding was that CreditWatch negative listings outnumbered positive listings 3.2 to 1. The study covered global Corporates (including utilities), Financial Services, Structured Finance, Sovereigns, and International Public Finance. The study period was 2000 through early 2007 for Structured Finance, and 1990 through 2006 for the remaining sectors. 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 Contacts: Gail I Hessol, New York (1) 212-438-6606 Erkan Erturk, Ph.D., New York (1) 212-438-2450 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]