Bangkok--2 Jun--UN As of May 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 today by Standard & Poor's. The article, which is titled "Stress In Corporate America: Consumer-Reliant Sectors Still Sing The Blues (Premium)," says that these sectors consistently lead risk in our lists of distressed companies, weakest links, and potential bond downgrades. "Weakness in the consumer products, media and entertainment, and retail/restaurants sectors is a result of U.S. consumers' diminished economic prospects," explained Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Consumer spending is critical to continued economic expansion, as it accounts for 70% of the U.S. GDP." These cyclical sectors rely heavily on consumer spending, which has recently declined after showing resilience in 2007. "We expect consumer spending to grow only 1.5% in 2008, a deceleration compared with 2.9% in 2007 and 3.1% in 2006," 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 a difficult economic environment. This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. 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