Bangkok--23 May--Standard & Poor's Through May 13, 2008, there were 28 defaults, affecting debt worth $18.9 billion, said an article today published by Standard & Poor's. The article, which is titled "Global Bond Markets' Weakest Links And Monthly Default Rates (Premium)," says that this already exceeds the 22 defaults recorded in all of 2007. In addition, it is just two shy of the 30 defaults in 2006. Of the 28 defaults, 27 were from the U.S., and one was from Canada. The U.S. also leads in the number of weakest links--entities that are closest to the default threshold—with 107 entities or 82%. "Our mean baseline forecast is for the U.S. speculative-grade default rate to escalate to 4.7% in the next 12 months from a 25-year low of 0.97% recorded at the end of 2007," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "The increase in defaults reflects the unfolding recessionary conditions, weaker earnings prospects, and continued financial pressures that will increase lending constraints." Continued financial-market volatility, tightening credit conditions, an unfolding housing correction, dollar weakness, and the risk of a larger or a smaller impact of the fiscal stimulus package contribute to substantial variability in the default forecast. A material risk remains that defaults could be significantly more pronounced and severe, especially if the recession would be deeper and longer than expected. 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 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 and markets, 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]