Bangkok--9 Jul--Standard & Poor's,
In light of falling consumer demand against a backdrop of economic and credit market turbulence, the media and entertainment, oil and gas exploration and production, and retail/restaurants sectors were, in Standard & Poor's opinion, the most negatively affected sectors as of June 25, 2010.
In an article published today, titled "Stress In Corporate America: As The Recovery Shows Signs Of Weakening, Credit Stress Spreads Across Multiple Sectors (Premium)," we use three of our preexisting research criteria to identify and spotlight U.S. sectors that have the highest levels of credit stress.
The media and entertainment, oil and gas exploration and production, and retail/restaurants sectors have the highest levels of risk among our lists of distressed companies (defined as speculative-grade companies with securities trading in excess of 1,000 basis points 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 131 companies in these three sectors that meet at least one of these criterion," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "Of these, 28 are on more than one list, indicative of even higher vulnerability. Four 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 Contacts:
Diane Vazza, New York (1) 212-438-2760
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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Americas Customer Service: (1) 212-438-7280
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