TEXT-S&P: Spain, Spain-based firms join potential fallen angels

Wed Nov 21, 2012 10:59am EST

Nov 21 - Since our previous report, the number of global fallen angels
increased by two to 37 (through Nov. 9), said an article published today by
Standard & Poor's Global Fixed Income Research, titled "Fallen Angels In
Emerging And Developed Markets, Including The U.S. And Europe: Spain And Spanish
Banks Join The Potential Fallen Angels." We define fallen angels as issuers that
Standard & Poor's Ratings Services downgrades to speculative grade ('BB+' and
lower) from investment grade ('BBB-' and higher). 

"In comparison, the count was 32 at this point last year and 16 two years 
ago," said Diane Vazza, head of Standard & Poor's Global Fixed Income 
Research. "The 37 fallen angels account for US$267.8 (EUR210.7) billion in rated
debt." 62.16% of fallen angels transitioned from a 'BBB-' rating to a 'BB+' 
rating to achieve the fallen angel status.

The potential fallen angels--issuers rated 'BBB-' with either negative rating 
outlooks or ratings on CreditWatch with negative implications--count totals 53 
and account for US$962.7 (EUR757.4) in rated debt. By region, Europe leads with 
19 entities (or 36% of all potential fallen angels), the U.S. follows with 12 
issuers (23%), and Asia-Pacific has 11 (21%). The Kingdom of Spain is one of 
the new potential fallen angels. The bank sector has the most potential fallen 
angels, with 24 issuers. We added 11 entities to the potential fallen angels 
list since our last report and removed four. 

On Oct. 10, 2012, Standard & Poor's lowered its sovereign credit ratings on 
Spain to 'BBB-/A-3' from 'BBB+/A-2'. The outlook on the long-term rating is 
negative. The downgrade reflected Standard & Poor's view of the mounting risks 
to Spain's public finances, due to rising economic and political pressures 
(For more information see "Research Update: Spain Ratings Lowered To 
'BBB-/A-3' On Mounting Economic And Political Risks; Outlook Negative," 
published Oct. 10, 2012, on RatingsDirect on the Global Credit Portal). In 
addition, we added the following Spain-based entities to the list of potential 
fallen angels: Banco Bilbao Vizcaya Argentaria S.A., CaixaBank S.A., and 
Santander Consumer Finance S.A.
 


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 research_request@standardandpoors.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.