S&P: Tighter lending conditions slow new issuer growth in U.S.
Our current ratings universe of U.S. corporates that are not in default decreased by 23 to 3,174 at the end of the first quarter of 2008 from 3,197 at the end of 2007, according to an article published yesterday by Standard & Poor’s. The report, titled, “U.S.
Ratings Distribution: Glut Of Low-Rated Issuers Could Mean Escalating Default Rates,” says that 35 speculative-grade rated firms either defaulted or had their ratings withdrawn, and 12 firms were assigned first-time investment-grade ratings.
“Though credit conditions remain challenging, there have been some initial signs of improvement for corporate bond prices; both the high-yield and investment-grade markets have rallied since mid-March,” said Diane Vazza, head of Standard & Poor’s Global Fixed Income Research Group. “Reported earnings for S&P 500 firms in the first quarter have also been relatively healthy for most corporate sectors, with financials the main exception.” — www.theasianbanker.com (May 15 2008)–