Bangkok--26 Aug--Standard & Poor's High-yield bond spreads and the CDX index have widened considerably in recent months, said an article published today by Standard & Poor's. The article, which is titled "U.S. Credit Comment: High-Yield Spreads And CDX Index Signal Higher Default Rates (Premium)," says that this reflects the heightened volatility in the credit markets and the economic uncertainty in the U.S. and globally. The U.S. speculative-grade bond spread reached 780 basis points (bps) on Aug. 18, 2008, from 757 bps at the end of July, 561 bps at the end of 2007, and only 366 at the end of August last year. "This is not surprising," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Investors have become more risk averse and are demanding a much higher premium to hold speculative-grade securities in this environment of rising delinquencies and slowing economic activity." Downgrades among U.S. speculative-grade entities have become more commonplace. Through Aug. 18, the downgrade ratio--the percentage of downgrades to total rating actions--reached 82% compared with the monthly average of 64% in 2007 and 73% in the first seven months of this year. In other words, more than eight out of every 10 rating actions in August has been a downgrade. Relative to market perception--as measured by the speculative-grade spread--the current rate of downgrades is largely in line with prevailing market sentiment based on the established trend since 1999. 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: David Wargin, New York (1) 212-438-1579, [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]