Bangkok--16 Dec--Standard & Poor's,
Globally, the number of issuers poised to migrate up the credit spectrum remained unchanged at 14 for the month of December, two more than the 48-month low of 12 issuers in July, said an article published today by Standard & Poor's.
Meanwhile, the count of entities about to cross over in the opposite direction (potential fallen angels) is elevated at 65 issuers, unsurprising given crossover credits' generally corroborative relationship with the broader economy, according to the article, titled "Global Potential Rising Stars (Premium)." (Potential rising stars are defined as entities that are rated 'BB+' with either a positive outlook or with ratings on CreditWatch with positive implications.)
"Fallen angels exceed rising stars by a margin of 11," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "And the volatility in the credit markets, coupled with overall downward pressure, especially noted by the sharp decline in potential rising stars and general malaise regarding global economic and credit circumstances, maintains our belief that crossover credit quality is more strongly poised for credit deterioration rather than improvement."
This year, 38 issuers have crossed to investment grade from speculative grade, affecting debt worth US$168.88 (132.06) billion, more than one-third of which is attributed to the sovereign rating change on the Federative Republic of Brazil.
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.
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