S&P records another fallen angel, bringing year-to-date total to 14

By Angela McDaniels

Tacoma, Wash., Oct. 22 - Standard & Poor's said it downgraded one issuer to speculative grade from investment grade since its previous report, raising the total number of global fallen angels to 14 in 2010 so far.

These 14 issuers account for $393.83 billion in rated debt, according to an agency news release.

In comparison, 23 rising stars - issuers upgraded to investment grade - have been tallied this year. They have rated debt worth $46.65 billion.

"Since our previous report, the tally of potential fallen angels worldwide decreased by one, to 55 issuers," Diane Vazza, head of S&P global fixed income research, said in the release. These issuers have $284.38 billion of rated debt.

Potential fallen angels are issuers rated BBB- with either a negative outlook or ratings on CreditWatch negative.

"We believe that the sectors poised to lead fallen angel incidence are banks, with 10 issuers, followed by transportation, with six entities, and consumer products and insurance, with five entities each," Vazza said.

Greece-based financial services provider Alpha Bank AE remains the year's largest fallen angel by debt volume, with $29.21 billion in rated debt.

The Republic of Hungary is the largest potential fallen angel. It has $57.72 billion of rated debt.

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