Bangkok--9 Oct--Standard & Poor's As of Sept 30, 2008, the consumer products, media and entertainment, and retail/restaurants sectors remain most susceptible to economic and credit-market turbulence, said an article published today by Standard & Poor's. The article, which is titled "Stress In Corporate America: Consumer-Based Deterioration Continues (Premium)," says these sectors consistently lead risk in our lists of distressed companies (defined as speculative-grade companies with securities trading in excess of 1,000 basis points above U.S. Treasuries), weakest links (companies rated 'B-' or lower with either a negative outlook or on CreditWatch with negative implications), and potential bond downgrades (investment-grade or speculative-grade companies that have either a negative outlook or on CreditWatch with negative implications). September was marked by the collapse of several large financial institutions and banks as well as the resulting credit injections and proposed bailout legislation from the Federal Reserve and Treasury. "This upheaval--combined with rising unemployment and tightening credit--is affecting sectors that rely heavily on consumer spending," explained Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Consumer spending accounts for 70% of U.S. GDP, and Standard & Poor's expects it to rise only 1% in 2008 compared with a growth rate of 2.8% in 2007." In addition, many companies are running under tighter operating and profit margins because of rising input costs and slower consumer spending, which is stemming from a weaker housing market and contracting lending conditions. This raises concern about both the failure to meet financial covenants and growing financial leverage during a difficult economic environment. 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: Adam Tempkin, New York (1) 212-438-7530, [email protected] Analyst Contacts: Diane Vazza, New York (1) 212-438-2760 Nicholas Kraemer, New York (1) 212-438-1698 Key Contacts: Americas Media Relations: (1) 212-438-6667 media_ [email protected] Americas Customer Service: (1) 212-438-7280 [email protected]