Rising Stars In Emerging And Developed Markets, Including The U.S. And Europe: The Count Increases Considerably |
| Publication date: 13-Apr-2012 15:56:38 EST |
The number of rising stars has increased to six from one since the past reporting period. We define rising stars as issuers that Standard & Poor's Ratings Services has upgraded to investment grade from speculative grade. Even though the count has considerably increased, it is generally a lower total than historical figures. When looking at this same time period in each of the past five years, we found that the median count of rising stars is 13. Since the last report, 23 issuers have the greatest potential for upgrades to investment grade, which is an increase of three. This suggests that the count of rising stars may increase at a faster rate. The 23 potential rising stars account for $93.8 (€71.6) billion in rated debt, which is significantly less than the $181.7 (€138.8) billion in rated debt of the 42 potential fallen angels (the count of entities most at risk of downgrades to speculative grade) as of April 9, 2012.
The highlights since the last report are:
- The number of potential rising stars increased to 23 from 20, with three removals and six additions.
- The six rising stars account for $27.7 (€21.1) billion in rated debt.
- Fallen angels have outpaced rising stars, with a total of 11 so far this year (as of April 9).
- Potential rising stars are spread out fairly evenly, with the media and entertainment sector accounting for the most (three).
- We define potential rising stars as entities that Standard & Poor's may upgrade to investment grade. These issuers are currently rated 'BB+', and the rating either has a positive outlook or is on CreditWatch with positive implications.
- Of the 23 potential rising stars, 10 are members of Standard & Poor's equity indices.
- The Republic of Indonesia remains the largest potential rising star, with $55.1 (€42.1) billion in rated debt (see table 5).
- The count of potential fallen angels is 42, with rated debt worth $161.4 (€123.4) billion.
Rising Star Activity
Standard & Poor's upgraded five issuers to investment grade from speculative grade since our previous report. In comparison, the rising stars count was 13 as of April 9, 2011. The number of potential rising stars increased by three issuers since the last report, which indicates that the total may increase at a faster pace going forward.
On April 4, 2012, Standard & Poor's raised its ratings on Brazil-based branded food producer BRF Brasil Foods S.A. to 'BBB-' from 'BB+'. The upgrade reflects our view that BRF's business profile has improved following the full integration of Sadia S.A. and BRF. BRF has maintained resilient profitability and moderate financial policies, and it has decreased its leverage. The outlook is stable, reflecting the expectation that BRF will maintain adequate liquidity and gradually reduce its debt in the next several years. The company was part of our list last month. (For more details, see "Research Update: BRF Brasil Foods S.A. Upgraded To 'BBB-' From 'BB+', On A Stronger Business Profile And Credit Metrics," published April 4, 2012, on RatingsDirect.)
On April 3, 2012, Standard & Poor's raised its long-term foreign and local currency sovereign credit ratings on the Oriental Republic of Uruguay to 'BBB-' from 'BB+'. The outlook on the long-term ratings is stable. The upgrade is based on Uruguay's sound economic growth prospects and improving external and fiscal indicators, with strong foreign direct investment and improved economic diversification. Prudent economic policies in recent years and a broad political consensus have allowed Uruguay to grow rapidly and reduce its main credit vulnerabilities. (For more details, see "Research Update: Uruguay Upgraded To 'BBB-' On Increasing Ability To Withstand External Shocks; Outlook Stable," published April 3, 2012.)
On March 26, 2012, Standard & Poor's raised its corporate credit rating on Netherlands-based petrochemical company LyondellBasell Industries N.V. to 'BBB-' from 'BB+' and affirmed its 'BB+' issue-level ratings on the company's existing senior unsecured notes. The outlook is stable. The upgrade reflects our opinion that LyondellBasell should continue to benefit during the next several years from an improved competitive position and strong operating results, stemming in part from the availability of low-cost natural gas in the U.S. The rating also reflects its increased comfort regarding financial policies and governance, and the continuing improvement in the company's capital structure. (For more details, see "Research Update: LyondellBasell Industries N.V. Rating Raised To 'BBB-' From 'BB+', New $3 Billion Notes Rated 'BB+'; Outlook Is Stable," published March 26, 2012.)
On March 15, 2012, Standard & Poor's raised its long- and short-term issuer credit ratings on U.S.-based Regions Financial Corp. to 'BBB-/A-3' from 'BB+/B'. The outlook is stable, reflecting our expectation that the company will remain profitable in 2012 and 2013, partly as a result of additional loan-loss reserve releases and a gradual improvement in asset quality. The upgrade primarily reflects our view that Regions' capital and earnings have improved. As a result, Standard & Poor's has raised the bank's stand-alone credit profile to 'BBB' from 'BBB-'. Regions has announced that it plans to redeem $3.5 billion in Series A cumulative perpetual preferred shares issued to the U.S. Treasury under the Troubled Asset Relief Program's Capital Purchase Program and that it had priced a common stock offering of approximately $900 million. Regions Financial Corp. is an S&P 500 constituent. (For more information, see, "Research Update: Regions Financial Upgraded To 'BBB-/A-3' From 'BB+/B' On Stock Issuance And Preferred Share Redemption; Outlook Stable," published March 15, 2012.)
On March 14, 2012, Standard & Poor's raised its corporate credit rating on U.S.-based carpet and floor covering maker and S&P Midcap 400 constituent Mohawk Industries Inc. by one notch to 'BBB-' from 'BB+'. The outlook is stable. The upgrade reflects the view that Mohawk will maintain and improve credit metrics consistent with a low investment-grade rating. Mohawk has reduced adjusted debt by more than 40% since the last housing peak in 2007, improving adjusted leverage to what it was before the downturn (about 2.8x). Standard & Poor's expects earnings and funds from operations to gradually increase over the next two years because of recent cost reductions and slowly improving market conditions. The company was part of our potential rising stars list last reporting period. Mohawk is an S&P Midcap 400 constituent. (For more information, see "Research Update: Mohawk Industries Inc. Upgraded To 'BBB-' On Improved Credit Ratios; Outlook Stable," published March 14, 2012.)
Chart 1
Table 1
| Rising Stars In 2012 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Date | Issuer | To | From | Sector/subsector | Country | Debt affected (mil. $) | ||||||||
| 4/4/2012 | BRF Brasil Foods S.A. | BBB- | BB+ | Consumer products | Brazil | 1,000 | ||||||||
| 4/3/2012 | Oriental Republic of Uruguay | BBB- | BB+ | Sovereign | Uruguay | 9,184 | ||||||||
| 3/26/2012 | LyondellBasell Industries N.V. | BBB- | BB+ | Chemicals, packaging, and environmental services | Netherlands | 6,988 | ||||||||
| 3/15/2012 | Regions Financial Corp.* | BBB- | BB+ | Bank | U.S. | 6,210 | ||||||||
| 3/14/2012 | Mohawk Industries Inc.* | BBB- | BB+ | Forest products and building materials | U.S. | 1,300 | ||||||||
| 2/14/2012 | Starwood Hotels & Resorts Worldwide Inc.* | BB+ | BBB- | Media and entertainment | U.S. | 3,000 | ||||||||
| *S&P index constituent. Debt figures include rated issuer-level debt (secured and unsecured), bank loans, subordinated debt, medium-term notes, preferred stock, convertible debt, and drawdowns under medium-term-note programs. They exclude commercial paper programs, shelf regulations, certificates of deposit, and revolving credit facilities. Data as of April 9, 2012. Source: Standard & Poor’s Global Fixed Income Research. | ||||||||||||||
Fallen angels typically outnumber rising stars. The count of fallen angels exceeded that of rising stars in 14 out of the past 25 years (from 1987 through 2011) (see chart 2). And, although rising stars outpaced fallen angels in 2010, the usual pattern resumed in 2011, with fallen angels surpassing rising stars globally 45 to 38.
Chart 2
Profile Of Potential Rising Stars
As of April 9, 2012, 23 globally rated entities showed the greatest potential to achieve rising star status. Together, these entities had $93.8 (€71.6) billion in rated debt. Since our most recent report, we added four issuers to the list of potential rising stars after Standard & Poor's revised the CreditWatch status or rating outlook to positive. Additionally, we added Kansas City Southern and Las Vegas Sands Corp. after Standard & Poor's upgraded them and assigned the ratings positive outlooks.
We removed three companies from the list, BRF Brasil Foods S.A., Mohawk Industries Inc., and Rosbank OJSC JSCB, after Standard & Poor's upgraded them.
Geographically, the U.S. continues to account for a large number of the potential rising stars, with 16 (70%) of the 23 issuers. The Asia-Pacific region accounts for three (13%) issuers, while all other regions account for one each.
The media and entertainment sector has the most potential rising stars with three (see chart 3). All other sectors account for one or two issuers.
Chart 3
In total, 10 of the 23 entities are members of Standard & Poor's equity indices. Four are included in the S&P 500 Index, one is in the S&P Europe 350 Index, and five are in the S&P Midcap 400 Index.
We define potential rising stars as entities that Standard & Poor's may upgrade to investment grade. These issuers are currently rated 'BB+', and the rating either has a positive outlook or is on CreditWatch positive. A positive outlook or a CreditWatch positive placement is good leading indicator of actual upgrades. Standard & Poor's Global Fixed Income Research published a long-term study that corroborates this (see "CreditWatch And Rating Outlooks Provide Powerful Warning Signals," published Aug. 7, 2007). CreditWatch status and rating outlook are strong predictors of rating actions, both in the aggregate and broken down by rating category, region, or sector. For example, the study showed that Standard & Poor's upgraded , on average, 46% of 'BBB' rated companies with positive outlooks within 13 months and upgraded 61% of companies with ratings on CreditWatch positive within eight months.
The number of global potential rising stars correlates with business cycles--a general peak at or near the beginning of a recession, a sharp decline during a recession, and a gradual increase during a recovery period (see chart 4). Based on this relationship, as the economy grows, we expect rising star potential to slowly increase to an eventual peak at some point in the middle of the current business cycle. However, as history suggests, deviations could occur.
Chart 4
Returns And Spreads Among Rising Stars
Ongoing surveillance of entities with rising star potential is important for bondholders, because the value of their holdings could change if Standard & Poor's upgrades the rising stars. Moreover, from the issuer's perspective, the cost of capital generally declines significantly across the rising star threshold. Standard & Poor's ratings play a critical role in determining the margins issuers pay above risk-free Treasuries to access credit markets. The threshold between investment-grade ('BBB-' or higher) and speculative-grade ('BB+' or lower) ratings has important market implications for the cost of borrowing among issuers. For issuers in the 'BBB' rating category ('BBB+,' 'BBB,' and 'BBB-'), bond spreads were 163 bps to 257 bps greater than the benchmark five-year Treasury yield during the 12 months ended March 30, 2012. Borrowing spreads expand 338 bps to 576 bps more than Treasuries for issuers in the 'BB' rating category ('BB+,' 'BB,' and 'BB-') in the same period (see table 2 and chart 5).
Table 2
| Impact On Borrowing Costs By Threshold Rating Category | ||||||
|---|---|---|---|---|---|---|
| Rating | Minimum spread | Maximum spread | ||||
| BBB | 163 | 257 | ||||
| BB | 338 | 576 | ||||
| Spread data expressed in basis points. Option-adjusted spread ranges listed for U.S. nonfinancial and financial entities in the period March 31, 2011 - March 30, 2012. Source: Standard & Poor's Global Fixed Income Research. | ||||||
Chart 5
Business And Financial Risk Profiles Among Potential Rising Stars
Among the 23 global potential rising stars as of April 9, 2012, we list business and financial risk scores for 18 nonfinancial entities according to Standard & Poor's latest available issuer rankings (see table 3). Companies with the same rating and outlook are further ranked by Standard & Poor's opinion of credit quality based on business risks for investment-grade-rated companies and on financial risks for speculative-grade-rated companies. Business risk assessments are based on factors such as country risk, industry statistics, company position, and profitability/peer group comparison. The financial risk assessment is based on factors such as accounting, governance/risk tolerance, cash flow adequacy, capital structure/asset protection, and liquidity/short-term factors. Corporate business risk is categorized as excellent, strong, satisfactory, weak, or vulnerable. Financial risk is categorized as minimal, modest, intermediate, aggressive, or highly leveraged. Both qualifications refer to the companies' status-quo characteristics without taking into account any extraordinary state support. Of the 18 nonfinancial entities for which business and financial risk assessments are available, all have business risk of either fair or satisfactory.
Table 3
| Distribution Of Risk Assessments For Nonfinancial Potential Rising Stars | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| --Financial risk profile-- | ||||||||||||||
| Business risk profile | Minimal | Modest | Intermediate | Aggressive | Significant | Highly leveraged | ||||||||
| Excellent | ||||||||||||||
| Strong | ||||||||||||||
| Fair | 1 | 6 | 2 | 1 | ||||||||||
| Satisfactory | 1 | 7 | ||||||||||||
| Weak | ||||||||||||||
| Vulnerable | ||||||||||||||
| Data as of April 9, 2012. Source: Standard & Poor's Global Fixed Income Research. | ||||||||||||||
Table 4
| Movements In Credit Default Swaps Pricing Among Potential Rising Stars | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| --% change from-- | ||||||||||||||
| Entity | Country | Subsector | Five-year CDS spreads as of April 9, 2012 (bps) | 31 days ago | Beginning of 2012 | A year ago | ||||||||
| American Greetings Corp. | U.S. | Media and entertainment | 521 | (0.57) | 0.58 | 48.43 | ||||||||
| West Fraser Timber Co. Ltd. | Canada | Forest products and building materials | 310 | (4.62) | (0.64) | 14.81 | ||||||||
| Jabil Circuit Inc. | U.S. | High technology | 272 | 0.37 | (2.16) | 7.51 | ||||||||
| Interpublic Group of Cos. Inc. | U.S. | Media and entertainment | 189 | 1.61 | (26.46) | 35.00 | ||||||||
| Philippine Long Distance Telephone Co. | Philippines | Telecommunications | 125 | 5.93 | (20.89) | N.A. | ||||||||
| Textron Financial Corp. (Textron Inc.) | U.S. | Finance companies | 32 | (11.11) | (62.35) | (68.00) | ||||||||
| N.A.--Not applicable. CDS--Credit default swaps. Data as of April 9, 2012. Sources: Standard & Poor's Global Fixed Income Research and Markit Group Ltd. (data from this source do not constitute investment advice and cannot be relied on to make investment decisions). | ||||||||||||||
Table 5
| Issuers Rated 'BB+' With Ratings On CreditWatch With Positive Implications | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Subsector | Issuer | Country | Debt amount (mil. $) | Standard & Poor's equity-based index | Business risk | Financial risk | Rationale | |||||||||
| Finance companies | Textron Financial Corp. (Textron Inc.)* | U.S. | 885 | The CreditWatch placement reflects Standard & Poor's view that TFC's parent, Textron Inc. has shown a consistent commitment to support TFC, which has enabled the subsidiary to substantially reduce its credit and liquidity risk and focus on operating as a captive finance company. | ||||||||||||
| High technology | Lam Research Corp.§ | U.S. | 900 | S&P Mid-cap 400 | Fair | Intermediate | On Dec. 15, 2011, Standard & Poor's placed all of its ratings on Lam Research Corp., including the 'BB+' corporate credit rating, on CreditWatch with positive implications. The rating action followed company's announcement that it will merge with Novellus Systems Inc. in a stock-for-stock transaction valued at about $3.3 billion in the second quarter of 2012. | |||||||||
| Retail/restaurants | Dollar General Corp.* | U.S. | 2,751 | Satisfactory | Significant | The Credit Watch placement followed Dollar General's better-than-expected operating results for the quarter ended Feb. 12, 2012. We expect the positive operating momentum to continue in 2012, albeit at a slower pace than in 2011, as a result of its value proposition and good execution. | ||||||||||
| *Issuer added to the list since the March 14, 2012, commentary. §Standard & Poor’s equity-based index constituent. Parent companies are listed in parentheses. Data as of April 9, 2012. Source: Standard & Poor’s Global Fixed Income Research. | ||||||||||||||||
Table 6
| Issuers Rated 'BB+' With Positive Outlooks | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Subsector | Issuer | Country | Debt amount (mil. $) | Standard & Poor's equity-based index | Business risk | Financial risk | Rationale | |||||||||
| Automotive | Harman International Industries Inc.* | U.S. | 400 | S&P 500 | Fair | Intermediate | The positive outlook reflects Standard & Poor's view that it could raise its corporate credit rating on Harman to investment grade within the next year based on the firm's competitive position, sustained profitability, and positive free cash flow. Standard & Poor's also believes that management will pursue a conservative financial policy appropriate for an investment-grade rating as it expands its markets globally. | |||||||||
| Capital goods | Flowserve Corp.§ * | U.S. | 500 | S&P 500 | Satisfactory | Significant | The positive outlook reflects Standard & Poor's opinion that if the company's good operating performance and disciplined financial policy continues, we could raise the company's rating within the next 12 months. | |||||||||
| Capital goods | GKN Holdings PLC* | U.K. | 1,071 | S&P Europe 350 | Satisfactory | Significant | The positive outlook reflects Standard & Poor's view that GKN's efficiency has improved, which should support the group in 2012. In addition, Standard & Poor's believes that GKN's financial policy is now more focused on maintaining stable cash flows, although it is still aggressive in terms of acquisitions. | |||||||||
| Chemicals, packaging, and environmental services | CF Industries Inc. | U.S. | 1,600 | Fair | Intermediate | The positive outlook reflects Standard & Poor's expectation that the company will continue to benefit from favorable operating conditions over the next several quarters. CF Industries is now the largest North American nitrogen fertilizer business, and we expect the company to maintain this strong competitive position. EBITDA improved to nearly $2.4 billion currently. We believe that the fundamental improvements in the domestic nitrogen fertilizer industry will support EBITDA of $1.5 billion or greater for the next few years. | ||||||||||
| Forest products and building materials | West Fraser Timber Co. Ltd. | Canada | 300 | Fair | Intermediate | The positive outlook reflects Standard & Poor's expectations that West Fraser Timber Co. Ltd. will continue to generate good cash flows in the next two years as demand and lumber pricing improves, given expectations of gradual improvement in the U.S. housing construction market. The ratings on West Fraser Timber Co. Ltd. reflect Standard & Poor's view of the company's position as a leading North American lumber producer with low-cost lumber operations, a high degree of fiber integration, good product diversity, and low leverage. | ||||||||||
| High technology | Jabil Circuit Inc.* | U.S. | 1,112 | S&P 500 | Fair | Intermediate | The positive rating outlook reflects the potential for an upgrade if Jabil can sustain leverage at what it is currently, while maintaining its moderate financial policies and adequate liquidity in an industry known for revenue and earnings volatility. | |||||||||
| Homebuilders/real estate companies | Colonial Properties Trust | U.S. | 631 | Fair | Intermediate | The positive outlook on the company reflects Standard & Poor's expectation for additional debt protection measures as a result of favorable operating conditions and sustained improvements in asset quality. | ||||||||||
| Insurance | Zenith National Insurance Corp. (Fairfax Financial Holdings Ltd.) | U.S. | 67 | The positive outlook reflects Standard & Poor's view of Zenith's importance to Fairfax Financial Holdings Ltd. Also, Zenith has a strong competitive position and a consistently favorable direct loss ratio relative to peers. | ||||||||||||
| Integrated oil and gas | PT Pertamina (Persero) | Indonesia | 1,500 | Fair | Significant | The outlook on PT Pertamina is consistent with that on the sovereign rating. We expect the company to remain the government's primary vehicle for distributing subsidized fuel throughout the country, given its integrated operations, dominance in Indonesia's upstream and downstream oil and gas segments, and the strong demand prospects for energy in Indonesia. | ||||||||||
| Media and entertainment | American Greetings Corp.* | U.S. | 225 | S&P Mid-cap 400 | Fair | Modest | Standard & Poor's expects American Greeting's operating performance to remain relatively unchanged, particularly given its renewed focus on the core greeting card business. Also, we expect the operating performance to remain stable, which should allow the company to sustain its improved credit measures, possibly leading to a higher rating. | |||||||||
| Media and entertainment | Interpublic Group of Cos. Inc.* | U.S. | 2,075 | S&P 500 | Satisfactory | Significant | The positive rating outlook on Interpublic Group reflects the potential for a one-notch upgrade during the next 12 months if we become confident that the company can continue to improve its profitability and credit metrics, which will depend on the economic outlook and the company's business unit operational execution. | |||||||||
| Media and entertainment | Las Vegas Sands Corp.§ | U.S. | 9,107 | Satisfactory | Aggressive | The positive rating outlook reflects Standard & Poor's view that an upgrade of Las Vegas Sands is possible based on current performance expectations, particularly in the event of a strong ramp-up of Sands Cotai Central. | ||||||||||
| Metals, mining, and steel | Steel Dynamics Inc.§ | U.S. | 2,338 | S&P Mid-cap 400 | Satisfactory | Significant | The positive outlook reflects Standard & Poor's view that Steel Dynamic's end markets should continue to recover slowly, which could cause credit metrics to remain at a figure consistent with a higher rating, including a debt-to-EBITDA ratio less than 3x and funds from operations to total debt of more than 30%. | |||||||||
| Oil and gas exploration and production | Superior Energy Services Inc.* | U.S. | 2,150 | S&P Mid-cap 400 | Fair | Significant | The positive outlook reflects Standard & Poor's assessment of an improved business risk profile at Superior Energy Services, as well as the expectation that credit measures for the combined entity (Superior Energy Services Inc. and Complete Production Services) should remain healthy following the merger. The proposed merger will provide Superior with scale, scope, and diversity. The combined company will have almost $4 billion in annual revenues and more than $1 billion in EBITDA. | |||||||||
| Retail / restaurants | Sally Holdings LLC | U.S. | 3,840 | Satisfactory | Significant | The positive rating outlook reflects Standard & Poor's view that Sally Holdings, which is an indirect wholly owned subsidiary of Sally Beauty Holdings Inc., will continue to improve organic sales by 5% to 7%. Standard & Poor's believes that Sally's liquidity is strong and will meet its needs over the next 12 months. | ||||||||||
| Sovereign | Republic of Indonesia | Indonesia | 55,126 | The positive outlook reflects the likelihood of an upgrade of the Republic of Indonesia if the country lowers inflation while improving its balance sheet, likely in combination with successful fiscal, administrative, and structural reforms. The outlook also reflects continuing improvements in the government's balance sheet and external liquidity, a resilient economic performance, and cautious fiscal management. | ||||||||||||
| Sovereign | Republic of Latvia | Latvia | 3,036 | The positive outlook reflects Standard & Poor's view that it could raise the ratings on Latvia if the public-sector deficit continues to decline, households continue to deleverage, and profitability in the corporate (particularly tradable) sector increases. | ||||||||||||
| Telecommunications | Philippine Long Distance Telephone Co. | Philippines | 550 | The stable outlook on the rating on PLDT reflects the stable outlook on the sovereign rating. It also reflects Standard & Poor's expectation that PLDT's operating performance will be stable, and the company will generate positive free operating cash flow in the next two years at least. The rating on PLDT reflects the country, macroeconomic, and transfer and convertibility risk. | ||||||||||||
| Transportation | Kansas City Southern§ | U.S. | 3,069 | S&P Mid-cap 400 | Satisfactory | Significant | The positive outlook reflects Kansas City Southern's credit metrics and liquidity, which have continued to improve as a result of increasing earnings, debt reduction, and reduced interest expense. Standard & Poor's expects the company's revenues and earnings to continue to strengthen over the next few quarters and into 2013 as a result of better pricing, rising volumes (particularly in Mexico), and improved operating efficiency. | |||||||||
| Utility | Empresa de Energia de Bogota, S. A. E. S. P. (EEB) | Colombia | 610 | Fair | Highly leveraged | The positive outlook on Empresa de Energia de Bogota reflects Standard & Poor's view that the company continues to improve its financial profile and consolidate its business profile. The company has not only maintained solid cash flow generation and profit margins, but also has adjusted its financial policy towards a more prudent debt management. | ||||||||||
| Parent companies are listed in parentheses. *Standard & Poor's equity-based index constituent. §Issuer added to the list since the March 15, 2012, commentary. Data as of April 9, 2012. Source: Standard & Poor’s Global Fixed Income Research. | ||||||||||||||||
Table 7
| Leading Global Corporate Rising Stars By Debt Volume In Each Year (1997–2012) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Date | Company | To | From | Subsector | Country | Debt affected (mil. $) | ||||||||
| 1997 | Federated Department Stores | BBB- | BB+ | Retail | U.S. | 4,700 | ||||||||
| 1998 | Niagara Mohawk Power Corp. | BBB- | BB+ | Utility | U.S. | 6,781 | ||||||||
| 1999 | Korea Development Bank | BBB- | BB+ | Bank | Korea | 11,751 | ||||||||
| 2000 | ESKOM | BBB- | BB+ | Utility | U.S. | 2,892 | ||||||||
| 2001 | Cleveland Electric Illuminating Co. (FirstEnergy Corp.) | BBB | BB+ | Utility | U.S. | 9,246 | ||||||||
| 2002 | Petroleos Mexicanos (PEMEX) | BBB- | BB+ | Oil and gas EP | Mexico | 7,790 | ||||||||
| 2003 | SPX Corp. | BBB- | BB+ | Capital goods | U.S. | 2,700 | ||||||||
| 2004 | Vivendi Universal S.A. | BBB- | BB | Telecommunications | France | 19,900 | ||||||||
| 2005 | AT&T Corp. (SBC Communications Inc.) | A | BB+ | Telecommunications | U.S. | 5,313 | ||||||||
| 2006 | OAO Gazprom | BBB- | BB+ | Integrated OG | Russia | 10,647 | ||||||||
| 2007 | Williams Co.'s Inc. (The) | BBB- | BB+ | Oil and gas EP | U.S. | 9,920 | ||||||||
| 2008 | Countrywide Financial Corp. | AA | BB+ | Bank | U.S. | 25,668 | ||||||||
| 2009 | Fortis SA/NV (Fortis Group) | BBB- | BB | Insurance | Belgium | 24,701 | ||||||||
| 2010 | Georgia-Pacific LLC | BBB | BB+ | Forest | U.S. | 13,805 | ||||||||
| 2011 | Macy's Inc. | BBB- | BB+ | Retail | U.S. | 8,649 | ||||||||
| 2012 | LyondellBasell Industries N.V. | BBB- | BB+ | CP&ES | Netherlands | 6,988 | ||||||||
| Note: Ratings may not depict current rating of issuer. Data as of April 9, 2012. Source: Standard & Poor’s Global Fixed Income Research. | ||||||||||||||
Related Criteria And Research
- Research Update: BRF Brasil Foods S.A. Upgraded To 'BBB-' From 'BB+', On A Stronger Business Profile And Credit Metrics, April 4, 2012
- Research Update: Uruguay Upgraded To 'BBB-' On Increasing Ability To Withstand External Shocks; Outlook Stable, April 3, 2012
- Research Update: LyondellBasell Industries N.V. Rating Raised To 'BBB-' From 'BB+', New $3 Billion Notes Rated 'BB+'; Outlook Is Stable, March 26, 2012
- Research Update: Regions Financial Upgraded To 'BBB-/A-3' From 'BB+/B' On Stock Issuance And Preferred Share Redemption; Outlook Stable, March 15, 2012
- Research Update: Mohawk Industries Inc. Upgraded To 'BBB-' On Improved Credit Ratios; Outlook Stable, March 14, 2012
- U.S. Utilities Ratings Analysis Now Portrayed In The S&P Corporate Ratings Matrix, Nov. 30, 2007
- CreditWatch And Rating Outlooks Provide Powerful Warning Signals, Aug. 7, 2007
- A Closer Look At Industrials Ratings Methodology, Nov. 13, 2006
- A Closer Look At Industrials Ratings Methodology: Accounting And Financial Reporting, Nov. 13, 2006
- A Closer Look At Industrials Ratings Methodology: Capital Structure/Asset Protection, Nov. 13, 2006
- A Closer Look At Industrials Ratings Methodology: Cash Flow Adequacy, Nov. 13, 2006
- A Closer Look At Industrials Ratings Methodology: Liquidity, Nov. 13, 2006
- Industrials' Business Risk/Financial Risk Matrix--A Fundamental Perspective On Corporate Ratings, April 7, 2005
| Global Fixed Income Research: | Diane Vazza, Managing Director, New York (1) 212-438-2760; diane_vazza@standardandpoors.com |
| Gregg R Moskowitz, Associate, New York (1) 212-438-1838; gregg_moskowitz@standardandpoors.com | |
| Research Contributor: | Nivritti Mishra Richhariya, CRISIL Global Analytical Center, an S&P affiliate, Mumbai |
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