Bangkok--6 Nov--Standard & Poor's Downgrade risk surged globally in the last couple of months, though it remains lower than the 2006 average, according to an article published today by Standard & Poor's. The report, titled "Downgrade Potential Across Credit Grades And Sectors," says that the number of entities at risk of downgrades increased to 650 in October, 12 more than the number reported in September and 15 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 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, 69% are based in the U.S., and 16% are in Europe." The highest ratios of issuers with a negative bias relative to their total rated universe continued to be concentrated in the media and entertainment, consumer products, retail/restaurants, and automotive sectors, indicating that these sectors are potentially most vulnerable to credit-quality deterioration. Of the leading sectors at risk of 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, given the negative effect of an economic slowdown, the housing decline, and high energy prices. Ms. Vazza added, "'B' rated companies are most at risk for potential downgrades, with 133 companies, which is 20% of the total. Of the 650 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.