Bangkok--1 Aug--Standard & Poor's Slowing economic conditions and stress in capital markets have put pressure on earnings and raised the credit risk of the members in the S&P 500 index, according to an article published today by Standard & Poor's. The article, which is titled "Credit Profile Of The S&P 500: More Credit Downgrades On The Horizon (Premium)," says that operating earnings per share for the S&P 500 fell to $16.60 in the first quarter of 2008 from $22.40 in the first quarter of 2007, a 26% decline. "Our macroeconomic research team expects operating earnings to decline to $79.40/share for the 2008 and $76 in 2009 from $82.5 in 2007," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. However, earnings have been dragged down, principally in the financials, homebuilders, and automotive sectors. Excluding financials, homebuilders, automotives, and the high-performing energy sector reported earnings are on pace to increase 5.4% in the second quarter. "Nevertheless, the difficult economic and financial market environment has already caused a slight slide in credit quality," Ms. Vazza added. The number of downgrades in the first half of 2008 is almost double in the number of downgrades in the first half of 2007. 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