Bangkok--8 Jun--Standard & Poor's
Following a volatile 2009, some ratings stability returned for Europe-based issuers in the first quarter of 2010, said an article published today by Standard & Poor's, titled "European Ratings Distribution: Ratings Remained Largely Stable In First-Quarter 2010 (Premium)."
"In full-year 2009, 64% of all issuers had the same ratings at the end of the year as they did at the beginning, which was the lowest percentage on record," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "In first-quarter 2010, nearly 93% of ratings remained unchanged."
At the end of first-quarter 2010, Standard & Poor's Ratings Services had ratings on 1,127 issuers domiciled in Europe, or 20% of the global total of 5,596. Of the 1,127 entities, Standard & Poor's rates 922 (81.8%) investment grade ('BBB-' and higher).
Upgrades continued to lag downgrades in the first quarter of 2010, but the difference between the two appears to be narrowing. "The downgrade-to-upgrade ratio through March 31, 2010, decreased to 2.53%, down markedly from 6.41% in 2009 and 2.85% in 2008," said Ms. Vazza. "In addition, the number of downgrades in first-quarter 2010 has declined from the previous year."
Nonetheless, the marked increase in downgrades in 2009, particularly among the lowest rating categories, pushed many entities further down the ratings ladder and closer to default.
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.
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Mimi Barker, New York (1) 212-438-5054,
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Analyst Contact:
Diane Vazza, New York (1) 212-438-2760
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