Bangkok--30 Sep--Standard & Poor's
Signs of economic recovery are emerging around the globe after a sharp contraction in late 2008 and early 2009, said an article published Monday, September 28 by Standard & Poor's, titled "Slow Stabilization For Asian, European, And U.S. Corporate Credit Quality (Premium)."
The deep global recession has taken its toll on credit quality--the number of downgrades has increased dramatically across all regions over the past 12 months.
"Although the pace of downgrades likely peaked in the first half of 2009, risks remain," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Most major economies likely will post positive growth in the coming quarters, but forecasts for 2010 growth remain below the long-term trend for most of the developed world."
Despite a record-high number of downgrades, the proportion of entities listed with a negative outlook or ratings on CreditWatch negative remains well above the long-run average, a sign that downgrades could remain at elevated levels. On the positive side, credit conditions have improved from the peak of the credit crunch. Strong investment-grade-rated companies have easily tapped the bond market in the U.S., Asia, and Europe, but weaker speculative-grade-rated companies are still facing tight credit market conditions and high costs.
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760