Bangkok--1 Oct--Standard & Poor's The number of entities at risk of downgrades globally has inched up in the last couple of months, though it remains lower than the 2006 average, according to an article published September 27, 2007 by Standard & Poor's. The report, titled "Downgrade Potential Across Credit Grades And Sectors," said that the count increased to 638 in mid-September, seven more than the number reported in August and one more than the average reported in the past 12 months. "Geographically, the U.S. tops the list of potential bond downgrades, in part, because of greater credit volatility but also, in part, because of 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 17% are in Europe." The highest ratios of issuers with a negative bias relative to their total rated universe are concentrated in the media and entertainment, automotive, and consumer products sectors, indicating that these sectors are potentially most vulnerable to credit-quality deterioration. Automotive, consumer products, and media and entertainment 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 the negative impact of a consumer slowdown, the housing decline, and high energy prices. Ms. Vazza added "'B' rated companies are most at risk of potential downgrades, with 133 companies, which is 21% of the total. Of the 638 companies at risk for downgrades globally, 64% have ratings of 'BB+' or lower." 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