Bangkok--4 Aug--Standard & Poor's As financial markets continue the malaise that began nearly a year ago, corporate defaults in the U.S. have started to rise in response, said an article published today by Standard & Poor's. The article, which is titled "U.S. Credit Metrics Monthly: Defaults Continued To Rise Through July," says that relevant credit metrics within the U.S. show continued deterioration of credit quality alongside a prolonged contraction of new issuance and tightening credit conditions. "Corporate defaults continue to rise as expected," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "With seven U.S. defaults in July, this brings the year-to-date total to 44." This easily exceeds the combined 16 and 22 defaults in full-years 2007 and 2006, respectively. The preliminary estimate for the U.S. 12-month trailing speculative-grade default rate in July is 2.25% (subject to revision), an increase from 1.92% in June and 0.97% in December 2007. "We expect the speculative-grade default rate to escalate to a mean forecast of 4.9% by June 2009," Ms. Vazza added, "but it could reach as high as 8.5% if economic conditions are worse than expected." The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected]. 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