Fallen angels reach 44 year to date, down from year ago's 55, S&P says

New York, Sept. 17 - Forty four companies have been downgraded to junk from investment grade so far this year, according to Standard & Poor's, down from 55 for the same period of 2002.

The rating agency added that the total count of fallen angels for the year will almost certainly be lower than last year's 84.

But there are big differences between regions and Europe could beat 2002's record, S&P added.

S&P noted that 2002 represented a peak in the global fallen angel rate after an increase in every year since 1996.

The 44 fallen angels so far in 2003 account for $64.5 billion of debt. The number is up four from the last report in August.

For the same period of 2002, there were 55 fallen angels with $141.1 billion of debt.

The U.S. accounted for 25 of 2003's fallen angels, still the biggest of any region although its share has been falling since 2000.

Europe has had 12 fallen angels so far this year, Asia-Pacific four and Canada three.

By industry sector, capital goods and media and entertainment generated the largest number of fallen angels globally with six each.

S&P identified 48 countries as vulnerable to downgrade to junk as of Sept. 17. The list includes issuers rated BBB- with either negative outlooks or on CreditWatch negative.

The total was down one from August. Since then, four have been downgraded, one had a change in outlook and four issuers were added, three in the U.S. and one in the U.K.

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