Downgrades rise in Europe, Moody's says

New York, Nov. 4 - The pace of ratings downgrades in Europe increased during October, ending a decline seen since May, according to Moody's Investors Service.

During the month there were 17 downgrades in western Europe and four upgrades. The downgrades include 10 in the non-financial sector.

Since the start of the year, there has been an average of 16 downgrades per month but in the third quarter the pace of credit deterioration slowed markedly to 11 per month, Moody's economist Kerryn Fowlie said in a report.

However Moody's also noted that multiple downgrades of two issuers, ABB Ltd. and TXU Europe Ltd., contributed to the increase. These two issuers accounted for five of the 10 downgrades to non-financial sector issuers in the month.

October included four declines to junk from investment-grade, Fowlie added, bringing the number of fallen angels for the year so far to 12.

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