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TEXT-S&P: weak economic data weigh on 3 most stressed sectors
July 16, 2012 / 2:53 PM / 5 years ago

TEXT-S&P: weak economic data weigh on 3 most stressed sectors

July 16 - In the past month, the initial positive response to the European
summit faded because of lack of details, the economic data in the U.S.
deteriorated, and concerns about slowing growth in the emerging markets
aggravated, said an article published today by Standard & Poor's Global Fixed
Income Research, titled "Stressed Sectors In Corporate America: Concerns About
Global Growth And Falling Oil Prices Weigh On The Media And Entertainment, Oil
And Gas, And Health Care Sectors." As a result, investors remained watchful and
anticipation of quantitative easing by central banks increased. 

"The media and entertainment, oil and gas, and health care sectors were the 
most troubled sectors in the U.S. as of June 30, 2012," said Diane Vazza, head 
of Standard & Poor's Global Fixed Income Research. In May, companies in these 
sectors had the highest risk among distressed issuers (speculative-grade 
companies with securities trading in excess of 1,000 basis points (bps) above 
U.S. Treasuries), weakest links (companies rated 'B-' or lower with negative 
outlooks or ratings on CreditWatch with negative implications), and potential 
bond downgrades (investment- or speculative-grade companies with negative 
rating outlooks or ratings on CreditWatch negative).

We use three of our research publications--weakest links, potential bond 
downgrades, and the distressed debt monitor--to identify and spotlight the 
U.S. sectors we believe are currently subject to the highest levels of credit 
stress. We identified 120 companies in these sectors that meet at least one of 
the criteria. We include full lists of all companies that meet the criteria in 
our regular monthly articles ("U.S. Distressed Debt Monitor," "Global Weakest 
Links And Default Rates," and "Bond Downgrade Potential").
 

The report is available to subscribers of RatingsDirect on the Global Credit 
Portal at www.globalcreditportal.com. If you are not a RatingsDirect 
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 
or sending an e-mail to research_request@standardandpoors.com. Ratings 
information can also be found on Standard & Poor's public Web site by using 
the Ratings search box located in the left column at www.standardandpoors.com. 
Members of the media may request a copy of this report by contacting the media 
representative provided.

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