Bangkok--1 Dec--Standard & Poor's
Standard & Poor's Global Fixed Income Research has published its "Stress In Corporate America" report, in which we use three of our preexisting research criteria--notably, weakest links, potential bond downgrades, and the distressed report--to identify and spotlight U.S. sectors that have the highest levels of credit stress.
As of Nov. 22, 2009, consumer products, media and entertainment, and retail/restaurants remained the most negatively affected sectors, according to the article, titled "Stress In Corporate America: Consumer-Reliant Sectors Are Improving, But They're Not Out Of The Woods Yet (Premium)."
These sectors consistently have the highest levels of risk among our current lists of distressed companies (defined as speculative-grade companies with securities trading in excess of 1,000 basis points, or bps, above U.S. Treasuries), weakest links (companies rated 'B-' or lower with either a negative outlook or ratings on CreditWatch with negative implications), and potential bond downgrades (investment-grade or speculative-grade companies that have either a negative outlook or ratings on CreditWatch negative).
"We identified 199 companies across these sectors on the basis of the three criteria," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "Of the 199 companies, 41 are on more than one list, indicative of even higher vulnerability. Five companies are featured on all three lists."
This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers to RatingsDirect on the Global Credit Portal at www.globalcreditportal.com and to RatingsDirect at www.ratingsdirect.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. 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