Fallen angels reach 19 year to date, fewest since 1998, at-risk list grows, S&P says

New York, Aug. 26 - The total of fallen angels so far this year grew to 19 as of Aug. 24, according to Standard & Poor's. They had $39.6 billion of debt.

The number is up six from the last report on June 17 but is still the lowest since 1998.

However S&P's list of companies at risk of being downgraded to junk grew.

The rating agency noted that the number of fallen angels is below the year-ago total even though concerns about the strength of the economic recovery have grown due to disappointing recent economic data, particularly in the United States.

For the comparable period of 2003 there were 42 and for 2002 there were 51 companies downgraded to junk from investment grade, S&P said.

But while the number of fallen angels only rose by six, the total volume of debt affected tripled in the period because the companies downgraded included AT&T Corp., TECO Energy Inc. and Citizens Communications Co. The other three issuers lowered were Ferro Corp., National Provident Life Ltd. and Leucadia National Corp.

Meanwhile S&P's list of potential fallen angels grew to 46 with $66.1 billion of debt, up by four issuers and $13.6 billion from 42 in June. The list is made up of companies rated BBB- and with a negative outlook or on CreditWatch negative.

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