Bangkok--20 Apr--Standard & Poor's
In another sign that U.S. credit quality is stabilizing, negative bias for speculative-grade rated corporate issuers fell to 25% at the end of March, said an article published today by Standard & Poor's. The article, which is titled "Downgrade Potential For U.S. Speculative-Grade Issuers Hits 12-Year Low," says that this is the lowest month-end level since September 1998, when it reached 23.5%. (Negative bias is the percentage of all rated firms with a negative outlook or ratings on CreditWatch with negative implications.)
"Although aggregate negative bias has fallen, it remains elevated at the lowest rating levels," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research group. At the end of March, 65% of 'CCC' rated issuers and 29% of 'B-' rated issuers had a negative bias. Across sectors, speculative-grade negative bias remains elevated for homebuilders and real estate (47%); financials (46%); capital goods (36%); transportation (33%); and media and entertainment (33%). Speculative-grade negative bias hit an all-time high of 46.5% in March 2009 and has declined steadily over the past year.
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Media Contact:
Mimi Barker, New York (1) 212-438-5054,
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Analyst Contact:
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