Bangkok--13 Dec--Standard & Poor's As of Dec. 5, 2007, 36 fallen angels have been recorded, affecting rated debt worth US$127.1 (87.3) billion, according to an article published today by Standard & Poor's. The report, titled "Global Potential Fallen Angels (Premium)," says that in the same period a year ago, 44 issuers were downgraded to speculative grade, with US$66.4 (45.6) billion in rated debt. "Globally, fallen angels have outpaced rising stars in the year to date, like the trend observed in 2006, but in contrast with the trend seen in 2004 and 2005," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "This trend is attributable to crossover activity in the U.S., where fallen angels have exceeded rising stars each year since 2005." The sectors most vulnerable to generating fallen angels by number of issuers are forest products and building materials, high technology, and transportation. By debt volume, the line up among potential fallen angels is the forest products and building materials, media and entertainment, and utility sectors. Ms. Vazza added, "Financial market turbulence temporarily put a lid on M&A activity, which has played a dominant role in the crossover of companies from investment grade to speculative grade this year. This month, the share of fallen angels (by number of issuers) associated with acquisition-related activity inched down to 47% from 49% a month ago. As of Dec. 5, 2007, 27% of companies identified as most likely to lose their investment-grade status were affected by risks from acquisition-related activity, including LBOs, compared with 53% in our midyear report." 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. 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]