NFX
UPDATE:2 Moved To Junk Status, 6 Pushed Out In Past Month By S&P 07/21 01:21 PM
(Adds details about latest upgrades.)
DOW JONES NEWSWIRES
The year-to-date total of entities moved to junk territory by Standard & Poor's Ratings Services stands at 11, as the number of those on the verge of joining that group fell, the ratings agency said Wednesday.
Meanwhile, six were moved to investment grade--Domtar Corp. (UFS:$49.30,00$-0.88,00-1.75%) , Newfield Exploration Co. (NFX:$50.0219,$-1.2481,-2.43%) , Southwestern Energy Co. (SWN:$37.27,00$0.41,001.11%) , Tupperware Brands Corp. (TUP:$39.3300,$-0.6500,-1.63%) , OAO Novatek (NVTK.RS) and Church & Dwight Co. (CHD:$65.90,00$-1.08,00-1.61%) .
The latest downgrades were QEP Resources Inc. (QEP:$29.702,0$-0.728,0-2.39%) , in the wake of its spinoff from Questar Corp. (STR:$16.4800,$-0.1800,-1.08%) , and Universal Health Services Inc. (UHS:$35.3000,$-0.9000,-2.49%) . The latter was moved from investment-grade territory in the wake of its pending $2 billion acquisition of Psychiatric Solutions Inc. (PSYS:$33.04,00$0.05,000.15%) .
The 11 entities moving to junk territory, highlighted by Greece's move in April, are below the 16 that have moved to investment grade. Downgrades had been far outpacing upgrades in recent years amid the economy's woes, but that trend has reversed so far this year.
But the numbers can switch back, as there were 64 entities on the verge of falling into junk territory, down two from a month earlier, while there are just 15 poised to move to investment grade, up one.
S&P noted, "Despite recent positive developments, we currently expect more credit quality deterioration than improvement."
Twelve of the companies which might be junked are banks, while eight consumer- products companies are on the list along with six each in the insurance and transportation sectors. -By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@ dowjones.com