The number of entities at the risk of a downgrade reached a new record of 703 in March, though only three more than last month, according to an article published on Wednesday by Standard & Poor?s.
The report, titled ?Downgrade Potential Across Credit Grades And Sectors,? says that credit fundamentals have been deteriorating in response to recessionary fears, along with a material slowdown in housing and consumer-related activity.
?The number of potential downgrades is 90 more than reported in the same period a year ago and is 68 more than the average recorded in 2007,? said Diane Vazza, head of Standard & Poor?s Global Fixed Income Research Group.
?The upsurge in the count of entities at the risk of downgrades began in mid-summer 2007 with the onset of the credit market disruptions.?
Sector-wise, media and entertainment recorded the highest ratio of issuers with a negative bias relative to their total rated universe, followed by forest products and building materials, automotive, consumer products, and retail or restaurants, indicating their high vulnerability to deteriorating credit quality.