Bangkok--27 Jun--Standard & Poor's The continuous increase in potential downgrades that started in mid 2007 has elevated the total count for this month to a new all-time high of 749, according to an article published today by Standard & Poor's. The article, which is titled "Downgrade Potential Across Credit Grades And Sectors (Premium)," says that this is 11 issuers more than 738 recorded last month. (Potential downgrades are defined as entities that have either a negative outlook or ratings on CreditWatch with negative implications across rating categories 'AAA' to 'B-'.) "A material slowdown in housing and consumer-related activity and protracted tightening of lending conditions have continued to dampen credit fundamentals," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. The number of potential downgrades is 132 more than reported in the same period a year ago, when an upsurge of downgrade potential began as the material erosion of the residential real estate sector and large write-downs by financial institutions began. By sector, savings and loans recorded the highest ratio of issuers with a negative bias relative to their total rated universe, followed by mortgage institutions and forest products and building materials. "This is unsurprising given the weakness in the housing markets," Ms. Vazza added. "Further, consumer discretionary sectors--including media and entertainment and consumer products--are poised for deterioration because of a lessening of credit availability and weakening demand." RatingsDirect is the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. The standard version of this article is part of our standard Global Fixed Income Research content. The premium version contains expanded analysis of the article's most significant points, typically broken out by sector and region. Also in the premium version are in-depth charts and tables, the underlying data of which are available for download. 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