S&P: Potential Upgrades Increase

June 4, 2010

Issuers considered for a ratings upgrade increased by 38 between May and June to a total of 257, which beats the trailing 12-month average by 68, according to a study released by Standard & Poor’s.

There are currently 257 companies listed as potential upgrades, which are 38 more than early Jay and 110 more than the total in May 2009. The upgrade potential has gained since September 2009, when the count of potential upgrades exceeded the trailing 12-month average for the first time in almost two years.

Of the 257 issuers listed as potential upgrades, 71% are speculative-grade companies. Of the total group of potential upgrades, 45% are rated in the single-B category. “The concentration in the speculative-grade segment is not surprising given that more volatility is associated with speculative-grade ratings,” S&P analysts said in the report.

Since early May, S&P has added 80 issues to the list of potential upgrades and removed 42. Of the 80 additions, 68 of them were revised favorably. Of the 42 issuers taken off the list, 27 were upgraded and assigned stable outlooks.  

For more information on related topics, visit the following: