Bangkok--8 May--Standard & Poor's Mounting defaults in 2008 come as hardly surprising, overdue if anything, said an article published today by Standard & Poor's. The article, which is titled "U.S. Credit Comment: The Bust After The Boom (Premium)," says that years of an accommodative economic and financial environment have emboldened many entities to adopt more aggressive financial policies to spur growth amid increased domestic and global competition. For the most part, this worked flawlessly during the boom years, with strong earnings prompting even more leverage and risk-taking among corporates. "As economic conditions deteriorated, however, and volatility in the financial markets protracted, corporate casualties began to emerge at a rate unseen in years," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. Defaults so far this year have been brisk, reaching 28 entities (including four confidentially rated), affecting debt worth $18.4 billion. This already exceeds the 22 defaults in all of 2007 affecting debt worth $8.1 billion and just a couple shy of the 30 defaults in 2006 affecting debt worth $7.1 billion. Of the 28 defaulters so far in 2008, 27 are from the U.S., and one is from Canada. By contrast, there were only 17 defaulters in the U.S. in full-year 2007 and 22 in 2006. The pace of U.S. defaults through the first five months of the year is the fastest since 2003. 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. 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