Bangkok--18 Dec--Standard & Poor's As of Nov. 30, 2007, 101 weakest links globally were vulnerable to default on combined rated debt worth $57.7 billion, which is one more than the number recorded last month, according to an article published today by Standard & Poor's. The report, titled "Global Bond Markets' Weakest Links And Monthly Default Rates (Premium)," says that the consumer products, retail/restaurants, and media and entertainment sectors continued to show the highest concentration of weakest links. "The U.S. speculative-grade default rate is expected to post a year-end, 25-year low of close to 1% in 2007," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Default occurrences remain scarce, even though access to credit has become more challenging following the mortgage market turbulence that began in the summer." The default rate has been below its long-term (1981-2006) average of 4.48% for 46 consecutive months. By region, the speculative-grade default rates were also at or near historical lows—0.97% in the U.S., 0.94% in Europe, and zero in the emerging markets. One default—U.S.-based American Color Graphics Inc.—was recorded among global corporates rated by Standard & Poor's Ratings Services in November, bringing the total to 18 defaults in 2007. These defaults affected rated debt worth $6.5 billion. Ms. Vazza added, "Financial strategies implemented during the favorable credit environment of recent years have insulated even the most vulnerable entities, allowing them to continue meeting financial obligations and forestall payment default despite the more challenging credit landscape. However, we expect the default rate trajectory to escalate in the next several quarters based on the cumulative impact of the changes in the credit-pricing environment, an increase in refunding needs, and a slowing economy." 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]