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 email@example.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.