BUSINESS

S&P: U.S. Downgrade Increased Downgrade Risks For Other Entities

09/08/2011 04:08 pm ET | Updated Nov 08, 2011

NEW YORK - Standard & Poor's downgrade of the U.S. sovereign credit rating last month increased downgrade risks for other global entities, including banks, the ratings agency said Thursday.

An article published by S&P's Global Fixed Income Research unit said the number of companies at risk of having their credit rating cut had risen by 14 to 465 as of Aug. 24.

The total remains below the peak of 1,028 in April 2009, S&P said, adding that some sectors were more stable than they have been historically. Banking, though, was among the sectors at risk, the agency said.

Entities considered at risk of a downgrade are those with ratings ranging from AAA to B- that have either a negative outlook or are on CreditWatch with negative implications.

The agency stripped the United States of its top-notch AAA rating in August. Four entities were added to the at-risk list after the U.S. downgrade, S&P said. (Editing by James Dalgleish)

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