Bangkok--13 Sep--Standard & Poor's Over the last month, the net number of entities with ratings at risk of slipping into speculative-grade territory increased by seven, according to an article published today by Standard & Poor's. The article, which is titled "Global Potential Fallen Angels," says that this is the largest monthly increase since April 2004. This month's tally is two fewer than what was recorded 12 months ago. Globally, 40 entities with rated debt totaling US$66 (48.3) billion are listed as potential fallen angels. (Potential fallen angels are defined as entities rated 'BBB-' with either a negative outlook or on CreditWatch with negative implications.) "Current turmoil and uncertainty across the U.S. housing market have led to six of the 11 additions in this month's potential fallen angel list," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. Globally, fallen angels lag rising stars in the year to date. "But this masks a divergence of trends in crossover activity in the U.S. compared with crossover worldwide," Ms. Vazza noted. "In the U.S., fallen angels have exceeded rising stars each year since 2005, in sharp contrast with the trend observed in other markets." M&A activity has played a key role in the crossover of companies from investment grade to speculative grade. With one addition this month resulting from M&A activity, fallen angels (by number of issuers) associated with acquisition-related activity stood at 70% of the total fallen angel activity. Moreover, as of Sept. 5, 2007, 45% of companies identified as most likely to lose their investment-grade status were affected by risks from acquisition-related (including LBO) activity. Year to date, 23 fallen angels have been recorded, affecting rated debt worth US$64.1 (?46.9) billion. This is an increase of one issuer from the last month. In the same period a year ago, 34 issuers were downgraded to speculative grade, with US$39.6 (?28.95) billion in rated debt. 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