Bangkok--4 Nov--Standard & Poor's
The number of issuers poised for upgrades fell to 245 this October, 24 fewer than almost a month ago, said Standard & Poor's in an article published today, titled "Upgrade Potential Across Credit Grades And Sectors (Premium)." The number of potential upgrades in October was the lowest count since we started our report in September 2004. On the other hand, potential bond downgrades are at their highest level in 38 months at 786 entities.
"The drop in upgrade potential is largely attributable to credit deterioration across the globe," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group, "especially in the U.S. and Europe, where adverse economic conditions and a freeze on the credit markets have effectively reduced an upward trajectory for even well-positioned issuers."
However, there are a few sectors, including metals, mining, and steel, as well as telecommunications, that are poised to better weather the current credit storm. Issuers in these sectors have a positive bias (defined as the number of entities listed with either a positive outlook or ratings on CreditWatch with positive implications) that exceeds the historical average. This highlights the likelihood that companies within these sectors have greater upgrade potential relative to other sectors or at least a stronger position of stability.
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:
David Wargin, New York (1) 212-438-1579, [email protected]
Analyst Contacts:
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