Bangkok--18 Jan--Standard & Poor's
The number of global fallen angels, or issuers downgraded to speculative grade ('BB+' and lower) from investment grade ('BBB' and higher), increased by one issuer since our previous report to a total of 75 as of year-end 2009, said an article published today by Standard & Poor's.
Together, these issuers have rated debt worth US$240.1 (?167.3) billion, according to the article, titled "Global Potential Fallen Angels (Premium)."
"This past year was the second-most active for fallen angel activity, both by issuer tally and debt volume, since our series began in 1987," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group.
"By issuer count, 2009 trails the record-high 84 fallen angels recorded in 2002. By debt volume, 2009 comes in second to the US$520.1 billion, or ?358.5 billion, in full-year 2005," said Ms. Vazza. "The record number of fallen angels in 2002 was largely a result of the previous recession, while 2005's record-high fallen angel debt volume stemmed largely from the downgrades of General Motors and Ford."
Our tally of global potential fallen angels increased by two this past month to 72 issuers with US$200.46 (?139.70) billion in rated debt. These companies are rated 'BBB-' and have either a negative outlook or ratings on CreditWatch with negative implications.
By count, finance companies lead 2009's fallen angels to date with 12 entities, followed by banks with 11 entities and utilities with nine. Sectors poised to lead fallen angel incidence are banks with 16 entities, followed by consumer products with nine and metals, mining, and steel with six.
The standard version of this article is part of our standard Global Fixed Income Research content. The premium version contains expanded analysis of the article's most significant points, typically broken out by sector and region. Also in the premium version are in-depth charts and tables, the underlying data of which are available for download. 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.
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