Bangkok--12 Mar--Standard & Poor's
Globally, the number of issuers positioned to migrate up the credit spectrum to investment grade declined by one since our previous report, said an article published today by Standard & Poor's, titled "Global Potential Rising Stars (Premium)."
This brings the total number of potential rising stars down to 11 issuers, with US$6.38 (?5.04) billion in rated debt. By comparison, this tally is the lowest level since the inception of this report in 2002. (Global potential rising stars are defined as entities that are rated 'BB+' with either a positive outlook or with ratings on CreditWatch with positive implications.)
On the other hand, the count of entities about to cross over in the opposite direction (potential fallen angels) is elevated at an 18-year record of 82 issuers, with rated debt totaling US$209.13 (?166.43) billion.
Since the start of the year, seven issuers globally have crossed over to investment grade from speculative grade, affecting debt worth US$15.72 (?12.43) billion.
"In 2009, fallen angels exceed rising stars by a margin of 13 issuers," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "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."
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Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760