Sovereign Rating Actions Are Affecting The Number Of Near-Term Potential Downgrades, Article Says

The number of global issuers poised for downgrades has continued to decline, reaching 486 as of Jan. 26, 2011, said an article published today by Standard & Poor's, titled "Global Potential Downgrades: Sovereign Rating Actions' Ripple Effects." This is 25% less than the total at this time in 2010. Potential downgrades are entities that have either a negative outlook or ratings on CreditWatch with negative implications across rating categories 'AAA' to 'B-'. "Although the total number of potential downgrades decreased to 486, the number of issuers with ratings on CreditWatch with negative implications increased to 104 from 70," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "The ratio of negative outlooks to CreditWatch negative listings decreased to 3.6 to 1 from 6.4 to 1. A lower ratio implies that the downgrades have a shorter-term horizon in which to materialize." Developments in the sovereign sector over the past few months led Standard & Poor's Ratings Services to place its ratings on Greece, Ireland, Portugal, and Tunisia, and their respective banks, on CreditWatch negative. These rating actions were largely responsible for the increase in CreditWatch activity. The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to [email protected]. 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

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