Bangkok--4 Jul--Standard & Poor's, The high-yield market will continue to be challenged on all fronts in the second half of 2008, according to an article published today by Standard & Poor's. The article, which is titled "U.S. Credit Comment: 10 High-Yield Themes For The Second Half Of 2008 (Premium)," explores in detail 10 key themes that will play out in the second half of the year. Last July, investors were looking ahead to the second half of 2007 and wondering if high-yield spreads would continue to challenge the tight levels seen in May 2007, if issuance could stay on the record pace, and what firm might be the next blockbuster LBO. Investors were also beginning to wondering if the storm brewing in the mortgage market might begin to affect the high-yield universe. "Fast forward a year, and the aftermath of the storm is apparent," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. Spreads on the Standard & Poor's high-yield index are up 381 basis points (bps); supply, which had surged to $100 billion in the first half of 2007, has slowed to a trickle; abundant liquidity that marked late 2006 and early 2007 has vanished; and investors are now well aware of the contagion effect between different asset classes. Moreover, the business cycle appears to have turned, banks and brokers are under duress, commodities prices have surged, and default rates have come off the cyclical low. "Investors have now turned their attention to when the storm will finally blow over," Ms. Vazza added. The 10 themes the article identifies outline the key challenges they'll need to address. 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 Contacts: 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]