Stock

[Stock]

S&P: Potential Upgrades Rise To 187; Junk Potential Also Up

Last update: 11/10/2009 6:55:46 AM

DOW JONES NEWSWIRES

The number of companies poised for credit ratings upgrades rose by 13 this past month to 187 and exceeded the trailing 12-month average for the first time in nearly two years, according to Standard & Poor's Ratings Services.

But the number of companies either with positive ratings outlooks or on watch for upgrade was 58 less than the year-earlier level.

Upgrades have become more prevalent in recent months, with only one fewer U.S. nonfinancial company last month seeing their rating raised than cut in October, a marked change from the past year as credit-quality issues continue to stabilize.

Still, the number of companies poised to fall into junk territory rose by two the past month to 72. They have a combined $196.37 billion in debt.

Of the so-called potential fallen angels, SLM Corp. (SLM) - with $34.02 in rated debt - is the largest in the group.

Banks have the most potential fallen angels at 16, followed by consumer products at nine, and the metals, mining and steel sector at seven.

The number of companies downgraded to speculative grade from investment grade remained at 67. The largest of them was CIT Group Inc. (CITGQ) with $38.19 billion in rated debt. It filed for bankruptcy protection.

The finance sector continues to have the most fallen angels this year, with 12, followed by banks at nine and utilities at eight.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail] (END) Dow Jones NewswiresNovember 10, 2009 06:55 ET (11:55 GMT)