Bangkok--22 Apr--Standard & Poor's.
Despite a turbulent 2008, the first quarter of 2009 proved to be even worse, with a global downgrade ratio of 93%--exceeding the record of 91% set in fourth-quarter 2008, said an article published today by Standard & Poor's.
"This is the highest level on record since our data series began in 1987, despite having two other recessionary periods in this time frame," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group.
The downgrade ratio is the count of downgraded issuers divided by the total count of upgraded and downgraded issuers.
By way of comparison, the highest downgrade ratios during the 1991 and 2001 recessions were 86% and 89%, respectively, according to the article, titled "Global Corporate And Sovereign Rating Actions: First-Quarter 2009 (Premium)."
All regions were negatively affected, with the first-quarter 2009 downgrade ratio in the U.S. up to 95%, Europe to 94%, other developed (Australia, Canada, Japan, and New Zealand) to 95%, and emerging markets to 93%, illustrative of how widespread credit pressures are in today's credit market.
This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers to RatingsDirect, at www.ratingsdirect.com. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Ratings in the left navigation bar, select Find a Rating. 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 Contact:
Diane Vazza, New York (1) 212-438-2760