Bangkok--26 Sep--Standard & Poor's As of Sept. 15, distressed issues across 13 sectors cumulatively affected debt worth $14.3 billion, up from the $12.7 billion reported last month according to an article published by Standard & Poor's today. The report, titled "U.S. Distressed Debt Monitor," said that based on debt volume, the media and entertainment sector had the largest portion of the total, constituting 42% this month, fully 31% higher than the nearest sector. "The U.S. distress ratio continued to climb after its recent increase in August," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "After five straight months at less than 1%, the distress ratio increased to 3.2% in September from 2.9% in August." All basis-point thresholds were affected by the current bout of market volatility, which triggered visible repricing across the board in July and August. The average spread on speculative-grade bonds moved up to 444 basis points on Sept. 13 from 427 on Aug. 15. The total number of rated companies with issues trading at distressed levels rose to 168, 20 more than reported last month. The consumer products, forest products and building materials, and automotive sectors displayed the highest distress rates as a share of total speculative-grade rated issues, each recording ratios in excess of 5%. Despite widespread increases in distressed issues, fully eight sectors (notably retail/restaurants) had fewer issues trading at distressed levels. Ms. Vazza added "Distress in the leveraged-loan market also rose, breaking past 1% for the first time since November 2005. At the end of August, our latest available data, the share of performing loans trading at prices of less than 80 cents on the dollar increased to 1.17% from 0.63% a month earlier." 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]