Bangkok--10 Jun--Standard & Poor's
Fallen angel incidence ebbed a bit last month, with three issuers downgraded to speculative grade from investment grade, after a surge of 17 issuers in March--the highest monthly tally since the Asian Financial Crisis in 1997, said an article published today by Standard & Poor's.
This brings the year-to-date fallen angel tally to 44 issuers, affecting rated debt worth US$139.69 (?102.49) billion, according to the article, titled "Global Potential Fallen Angels (Premium)."
Fallen angels are issuers downgraded to speculative grade ('BB+' and lower) from investment grade ('BBB-' and higher), whereas rising stars move in the opposite direction.
By count, finance companies lead 2009's fallen angels to date with seven entities, followed by banks and media and entertainment with five entities each and insurance with four entities.
"Looking ahead, 72 issuers currently exhibit fallen angel potential, as evidenced by 'BBB-' ratings with either a negative outlook or ratings on CreditWatch with negative implications," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. These 72 issuers have a total of US$293.01 (?214.97) billion in rated debt. "Sectors poised to lead fallen angel incidence include banks with 12 entities, followed by consumer products with eight entities and utilities with seven entities," said Ms. Vazza.
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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