Bangkok--6 May--Standard & Poor's The high-yield market rebounded in late March and into April, with spreads rallying to 685 basis points (bps) on April 29 from 802 bps on March 21, according to an article published today by Standard & Poor's. The report, titled "U.S. High-Yield Prospects: April Brings High-Yield Rally," says that volatility has also come down from its March peak. "Though the market has calmed, our outlook is fundamentally the same," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "We continue to expect a deterioration in credit quality for the high-yield segment. Downside risk will remain elevated, with a challenging economic environment putting pressure on earnings, especially for businesses that rely solely on the U.S. consumer." Of the 1,235 parent-level U.S. high-yield issuers rated by Standard & Poor's Ratings Services on April 16, 2008, we have evaluated the prospects for 1,210 issuers with debt outstanding. A study of their CreditWatch and outlook status identifies 116 issuers with a potential for upgrades and 10 potential rising stars. Of the total, 32.5% (393) of issuers are at the risk of downgrade. Firms in the automotive, consumer products, homebuilders, and real estate companies, media and entertainment, insurance, and retail and restaurants sectors remain vulnerable to relatively high downgrade risk. Firms in the telecommunications sector continue to have the greatest potential for upgrades. The percentage of issuers with developing risk was 1.82%. Ms. Vazza added, "With only $7.3 billion worth of rated debt issued in 2008 as of April 21, the high-yield market is off to its slowest start since 1995. However, we expect to see broker/dealers unload some high-yield bond debt from 2007, just as they have done with leveraged loans over the past couple of months." 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 23 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 www.standardandpoors.com. Media Contact: Mimi Barker, New York (1) 212 438 5054 Analyst Contacts: Diane Vazza, New York (1) 212-438-2760