S&P: Only 15 issuers poised for ascension to investment grade

By Jennifer Chiou

New York, Sept. 30 - Standard & Poor's said in a report that globally, one more issuer since last month is positioned to migrate up the credit spectrum this month, bringing the tally to 15 issuers.

Current potential rising stars constitute $12.14 billion in rated debt, the report said.

The agency noted that the 15 issuers make three issuers higher than the 46-month low of 12 issuers in July.

Meanwhile, the count of issuers about to cross over in the opposite direction as potential fallen angels is currently elevated at 45.

"Expectedly, one-third of those positioned to ascend to investment grade are from emerging market countries, the markets of which are expected to continue to absorb global financial assets," noted Diane Vazza, head of S&P's global fixed-income research group. These emerging market countries include Brazil, South Korea, Russia and Hong Kong, the report said.

The year-to-date total count of rising stars is 36, affecting debt worth $167.22 billion, compared with 36 issuers last year, with total rated debt worth $71.81 billion.

Global potential rising stars are defined as issuers that are currently rated BB+ with either a positive outlook or with ratings on CreditWatch with positive implications.

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