Seven rising stars emerge, but further growth unlikely, S&P says

By Jennifer Chiou

New York, April 1 - The year-to-date total count of rising stars is 14, affecting debt worth $13.7 billion, compared with an annual total of 36 issuers in 2007, with total rated debt worth $71.81 billion, according to a report by Standard & Poor's.

"Seven issuers have ascended to investment-grade since last month's report, five of which were part of last month's potential rising stars list," Diane Vazza, head of S&P's global fixed-income research group, said in a written statement.

"The 2008 first-quarter tally of 23 issuers positioned to migrate up the credit spectrum is the lowest in 11 months."

According to the report, current potential rising stars account for $159 billion in rated debt, of which $115.27 billion was attributed to sovereigns.

The report added that sovereigns and consumer products sectors lead the potential for ascent to investment grade in count, while the sovereigns sector followed by the metals, mining and steel sector lead in debt amount.

"Meanwhile, the count of entities about to cross over in the opposite direction [that is, potential fallen angels] is 42 issuers, near this credit cycle's record high of 48," Vazza added.

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