Bangkok--13 Nov--Standard & Poor's NEW YORK Nov. 12, 2007--As of Oct. 15, 2007, the consumer products, media and entertainment, and retail/restaurants sectors appear most susceptible to economic and credit market turbulence, according to an article published by Standard & Poor's on Nov. 7, 2007. The report, titled "Stress In Corporate America: Consumer-Reliant Sectors Feeling The Heat (Premium)," says these sectors consistently lead risk in our lists of distressed companies (defined as speculative-grade companies with securities trading in excess of 1,000 basis points above U.S. Treasuries), weakest links (companies rated 'B-' or lower and listed with either a negative outlook or on CreditWatch with negative implications), and our potential bond downgrade (investment-grade or speculative-grade companies listed with either a negative outlook or on CreditWatch with negative implications). "In the debut edition of Stress In Corporate America, we use three of our pre-existing research criteria--notably, weakest links, potential bond downgrades, and the distressed monitor--to identify and spotlight those sectors experiencing the highest levels of credit stress within the U.S.," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "A total of 224 companies were identified across the three leading sectors on the basis of the foregoing three screens." Weakness in the consumer products, media and entertainment, and retail/restaurants sectors is a result of the tenuous outlook associated with the U.S. consumer, which is crucial to continued economic expansion as it accounts for 70% of U.S. GDP. These cyclical sectors rely heavily on the pace of consumer spending, which is expected to decline in the remainder of 2007 and into 2008, despite its steady pace under increasing strain through the first half of this year. Our economists expect consumer spending to advance only 2.2% in 2008, a deceleration compared with the 3.0% and 3.1% in 2007 and 2006, respectively. Ms. Vazza added, "Other common risk factors to credit trends in all three sectors include accumulation of broad financial leverage, increased merger-and-acquisition activity, and a weakened housing sector." The report is available to RatingsDirect subscribers who have upgraded their package to include the Global Fixed Income Research add-on. RatingsDirect is 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 with the Global Fixed Income Research add-on, please contact your local Standard & Poor's representative or [email protected] for further information. 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.