Bangkok--15 Nov--Standard & Poor's Standard & Poor's has published its latest "Upgrade Potential Across Credit Grades And Sectors (Premium)" report, which states that the number of entities poised to benefit from upgrades was 375 in October, 13 fewer than the number reported in September, but three more than reported 12 months ago. "The upgrade potential has declined substantially since the beginning of the year," said Diane Vazza, head of Standard & Poor's Global Fixed Income research Group. Though by count, financial companies still lead other sectors most likely to benefit from upgrades. Two-thirds of financial companies listed with a positive bias (i.e., a positive outlook or ratings on CreditWatch with positive implications) are domiciled outside the U.S. "As a share of total rated companies, financials no longer lead potential upgrades," added Ms. Vazza. "Banks' performances in the near term will be exposed to exceptional volatility in capital markets and a gradual deterioration in the credit environment." Over the past few months, banks have seen significant widening of spreads and more difficult liquidity conditions, particularly in North America and Europe as the dislocation in the housing sector has affected other asset classes. Of the total, 106 companies are members of various Standard & Poor's equity indices. 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.