Bangkok--29 Aug--Standard & Poor's The U.S. distress ratio experienced its largest monthly increase since February 2003, according to an article published August 24, 2007 by Standard & Poor's. The article, which is titled "U.S. Distressed Debt Monitor," says that after five straight months at less than 1%, the distress ratio increased to 2.9% in August from 0.9% in July. (Distressed credits are defined as speculative-grade-rated issues that have option-adjusted spreads of more than 1,000 basis points relative to Treasuries.) The current bout of market volatility affected all basis-point (bp) thresholds, triggering visible repricing of spreads; the speculative-grade bond spread moved up 104 bps to 427 since July's report. The total number of rated companies with issues trading at distressed levels rose to 148, up markedly from 57 a month earlier. "Distress in the U.S. leveraged-loan market also rose, but was less affected than corporates," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. At the end of July (the latest data available), the share of performing loans trading at prices of less than 80 cents on the dollar increased to 0.63%, the highest level since November 2005. In the U.S., the consumer products, retail/restaurants, and finance company sectors displayed the highest distress rates as a share of total speculative-grade rated issues, each recording ratios in excess of 4%. Despite widespread increases in distressed issues, four sectors (notably health care) had fewer issues trading at distressed levels. 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]