S&P's rising stars outpace fallen angels in 2005

By Angela McDaniels

Seattle, Jan. 11 - Standard & Poor's said the number of rising stars exceeded that of fallen angels in 2005, maintaining a trend set in 2004, and that the difference between them is the greatest annually since 1997.

The rating agency recorded 59 rising stars as of Dec. 31, affecting rated debt worth $114.7 billion. As of Jan. 10, that number had risen by two.

In contrast, 41 fallen angels were recorded through Dec. 31, though the volume of debt affected by the downgrades - $520.6 billion - vastly outpaced the equivalent affected by upgrades. S&P attributed much of the fallen-angel downgrade volume to the downgrades of U.S. automakers General Motors Corp. and Ford Motor Co.

S&P said that 23 rated entities were best placed to acquire rising-star status as of Jan. 10, the lowest number in nearly two years. Together, these issuers have $38.7 billion in rated debt. To qualify, they are rated BB+ and on CreditWatch Positive or a positive outlook.

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