Bangkok--5 Sep--Standard & Poor's The potential downgrades count for this month was up marginally to 747, an increase of two issuers over last month's count, said an article published today by Standard & Poor's. By comparison, the number of potential downgrades in August was 116 more than what was reported in the same period a year ago and double the count of those poised for potential upgrades. 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-'. Geographically, the U.S. continues to top the list of potential bond downgrades, where roughly one-quarter of current ratings are at risk of being lowered, according to the article, titled "Downgrade Potential Across Credit Grades And Sectors (Premium)." By sector, forest products and building materials recorded the highest ratio of issuers with a negative bias (negative outlook or ratings on CreditWatch with negative implications) relative to their total rated universe, followed by mortgage institutions and automotive. "In many of the sectors at risk for potential downgrades, the proportion of issuers listed with a negative bias is currently higher than ever in this credit cycle, highlighting the risks to credit quality," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. Borrowing costs have not budged meaningfully from favorable lows, notwithstanding the turnaround in short-term benchmark rates, which undoubtedly remain a favorable factor for many issuers. 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 Contacts: Diane Vazza, New York (1) 212-438-2760