Bangkok--8 Apr--Standard & Poor's As of March 15, 2008, the consumer products, media and entertainment, and retail/restaurants sectors remain most susceptible to economic and credit market turbulence, according to an article published yesterday by Standard & Poor's. The report, titled "Stress In Corporate America: Credit Woes Spread Among Consumer-Reliant Sectors," says that, a total of 236 companies were identified across these leading sectors on the basis of three screens: weakest links, potential bond downgrades, and the distressed report. "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 critical to continued economic expansion as it accounts for 70% of the U.S. GDP, said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "These cyclical sectors rely heavily on the pace of consumer spending, which has recently declined after showing resilience in 2007. We expect consumer spending to advance only 1.6% in 2008, a deceleration compared with the 2.9% in 2007 and 3.1% in 2006." Of the 236 companies in these three sectors, 55 firms are on more than one list, indicative of higher vulnerability. Of those 55 companies, 49% are rated 'B-' or lower. And, judging by the current distributions of outlooks and CreditWatch listings, these sectors—generally classified as consumer discretionary—continue to have the greatest potential vulnerability to downgrades. Ms. Vazza added, "Many companies are running under tighter operating and profit margins because of rising input costs and slower consumer spending stemming from a weaker housing market. This raises concern about both the failure to meet financial covenants and growing financial leverage during an expansive difficult economic environment." 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