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TEXT-S&P: downgrades outnumber upgrades in Q3

(The following statement was released by the rating agency)

Oct 9 - Standard & Poor's Ratings Services downgraded 156 issuers andupgraded 65 globally in the third quarter of 2012, according to a Global FixedIncome Research report published today titled "Global Downgrades Dwarf UpgradesIn The Third Quarter--And Europe Takes Center Stage."

The downgraded issuers had a total of $456.2 (EUR351.6) billion in rated debt,and the upgraded entities accounted for $411.1 (EUR316.9) billion in rated debt.By issuer count, downgrades, which clocked in at 71% of total rating actionslast quarter, hit the highest level since the third quarter of 2009. This wasnot due to a surge of downgrades, as seen in the recent past, but more becauseof the lack of upgrade activity, especially in the U.S. and Europe, whichfailed to help balance the scale.

"In Europe downgrades outpaced upgrades at a ratio of five to one in the thirdquarter and its outlook, as measured by negative bias, remains 32% worse thanits historical average since 1995, despite eight consecutive quarters of heavydowngrade activity," said Diane Vazza, Managing Director for Standard & Poor'sGlobal Fixed Income Research.

While we expect global credit conditions to remain reasonably stable--thoughnot positive--in the near term, Europe remains a concern as economic andcredit conditions there do not currently support a turnaround. (For moreinformation, see "The Eurozone's New Recession--Confirmed," published Sept.25, 2012.)

The report is available to subscribers of RatingsDirect on the Global CreditPortal at

. If you are not a RatingsDirectsubscriber, you may purchase a copy of the report by calling (1) 212-438-7280or sending an e-mail to research_request@standardandpoors.com. Ratingsinformation can also be found on Standard & Poor's public Web site by usingthe Ratings search box located in the left column at

.(New York Ratings Team)

((e-mail: pam.niimi@thomsonreuters.com; Reuters Messaging:pam.niimi.reuters.com@reuters.net; Tel:1-646-223-6330;))

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