Credit Trends: Rising Stars In Emerging And …online.wsj.com/public/resources/documents/SANDPbonds...8/28/2012 Gazprombank (OAO Gazprom ) BBB- BB+ Bank Russia 6,252 8/13/2012 Tennessee

Credit Trends:

Rising Stars In Emerging AndDeveloped Markets, Including TheU.S. And Europe: The Rising StarsCount Reaches 24

Global Fixed Income Research:

Diane Vazza, Managing Director, New York (1) 212-438-2760; [email protected]

Gregg Moskowitz, Associate, New York (1) 212-438-1838; [email protected]

Research Contributor:

Abhik Debnath, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

Table Of Contents

Rising Star Activity

Profile Of Potential Rising Stars

Returns And Spreads Among Rising Stars

Business And Financial Risk Profiles Among Potential Rising Stars

Related Criteria And Research

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT NOVEMBER 21, 2012 1

1038292 | 300098418

Credit Trends:

Rising Stars In Emerging And Developed Markets,Including The U.S. And Europe: The Rising StarsCount Reaches 24

The number of rising stars increased to 24 from 23 since the last reporting period. We define rising stars as issuers that

Standard & Poor's Ratings Services has upgraded to investment grade (rated 'BBB-' and higher) from speculative grade

(rated 'BB+' and lower). The 24 rising stars account for US$55.1 (€43.14) billion in rated debt.

Since the last report, the number of issuers with the greatest potential for upgrades to investment grade has remained

constant at 23 issuers. Of the 23 potential rising stars, 15 (65%) are based in the U.S and four (17.4%) are based in

Europe. The 23 potential rising stars account for US$185.6 (€145.4) billion in rated debt, which is significantly less than

the US$962.7 (€757.4) in rated debt of the 53 potential fallen angels (entities most at risk of downgrade to speculative

grade) as of Nov. 9, 2012.

The highlights since the last report are:

• The number of potential rising stars remained unchanged at 23, with two removals and two additions.

• The 24 rising stars account for US$55.1 (€43.14) billion in rated debt.

• Fallen angels have outpaced rising stars, with a total of 37 issuers so far this year (as of Nov. 9).

• Potential rising stars are spread out fairly evenly, with the transportation and media and entertainment sectors

containing the most issuers (three).

• Of the 23 potential rising stars, eight are members of Standard & Poor's equity indices.

• 79.17% of rising stars transitioned from a 'BB+' rating to a 'BBB-' rating to achieve the rising star status.

Rising Star Activity

Standard & Poor's upgraded one issuer to investment grade from speculative grade since the previous report. As of

Nov. 9, there are 24 rising stars. In comparison, the rising stars count was 30 at the same point last year. The number

of potential rising stars remained unchanged, at 23, since the last report, which suggests that the total may increase at

a steady pace going forward.

On Nov. 8, 2012, Standard & Poor's assigned its 'BBB-' global scale rating to Alpek S.A.B. de C.V. and its proposed

issuance of up to US$600 million 10-year unsecured notes. At the same time, Standard & Poor's raised its global scale

rating on the company's main subsidiary, Grupo Petrotemex S.A. de C.V., to 'BBB-' from 'BB+'. The outlook on both

ratings is stable. The rating actions followed Alpek's announced plans to issue long-term notes of up to US$600 million

to repay Petrotemex's debt, thus firming its credit metrics and improving its debt maturity to about seven years from

three. Petrotemex accounts for more than 70% of the consolidated EBITDA, and, therefore, the credit quality of both

companies is highly intertwined. (For more information see "Alpek S.A.B. de C.V. And Its Notes Of Up To $600M

Rated 'BBB-', Petrotemex Upgraded To 'BBB-' From 'BB+', Outlook Stable," published on Nov. 8, 2012.)


1038292 | 300098418

Chart 1

Table 1

Rising Stars In 2012*

Date Issuer To From Sector/subsector Country

Affected debt

(mil. US$)

11/8/2012 Grupo Petrotemex S.A. de C.V. (Alpek

S.A.B. de C.V.)

BBB- BB+ Chemicals, packaging, and

environmental services

Mexico 275

10/2/2012 Mondi Consumer Packaging

International AG (Mondi Group)

BBB- B+ Chemicals, packaging, and


Germany 360

9/6/2012 Harman International Industries Inc.§ BBB- BB+ Automotive U.S. 400

9/4/2012 Empresa de Energia de Bogota S. A. E.

S. P. (EEB)

BBB- BB+ Utility Colombia 610

8/28/2012 Gazprombank (OAO Gazprom ) BBB- BB+ Bank Russia 6,252

8/13/2012 Tennessee Gas Pipeline Co. (Kinder

Morgan Inc.)

BBB BB Oil and gas exploration and

production

U.S. 1,790

7/11/2012 Flowserve Corp. BBB- BB+ Capital goods U.S. 500

7/5/2012 Philippine Long Distance Telephone

Co.

BBB- BB+ Telecommunications Philippines 300

7/2/2012 CF Industries Inc. BBB- BB+ Chemicals, packaging, and


U.S. 1,600

5/24/2012 El Paso Pipeline Partners L.P. (Kinder

Morgan Inc.)

BBB- BB Oil and gas exploration and

production

U.S. 1,675


1038292 | 300098418

Credit Trends: Rising Stars In Emerging And Developed Markets, Including The U.S. And Europe: The Rising StarsCount Reaches 24

Table 1

Rising Stars In 2012* (cont.)

5/23/2012 Superior Energy Services Inc.§ BBB- BB+ Oil and gas exploration and

production

U.S. 1,500

5/23/2012 Construtora Norberto Odebrecht S.A.

(Odebrecht S.A.)

BBB- BB+ Capital goods Brazil 2,050

5/14/2012 Flint Energy Services Ltd. (URS Corp.) BBB- BB- Oil and gas exploration and

production

Canada 175

5/2/2012 Latvia (Republic of) BBB- BB+ Sovereign Latvia 2,921

4/30/2012 Dollar General Corp. BBB- BB+ Retail / restaurants U.S. 3,631

4/26/2012 Textron Financial Corp. (Textron Inc.) BBB- BB+ Finance companies U.S. 885

4/25/2012 Lam Research Corp.§ BBB- BB+ High technology U.S. 900

4/13/2012 PNM Resources Inc. BBB- BB Utility U.S. 1,572

4/4/2012 BRF Brasil Foods S.A. BBB- BB+ Consumer products Brazil 1,000

4/3/2012 Uruguay (Oriental Republic of) BBB- BB+ Sovereign Uruguay 9,184

3/26/2012 LyondellBasell Industries N.V. BBB- BB+ Chemicals, packaging, and


Netherlands 6,988

3/15/2012 Regions Financial Corp.§ BBB- BB+ Bank U.S. 6,210

3/14/2012 Mohawk Industries Inc.§ BBB- BB+ Forest products and building

materials

U.S. 1,300

2/14/2012 Starwood Hotels & Resorts Worldwide

Inc.§

BBB- BB+ Media and entertainment U.S. 3,000

Note: The parent companies are listed in parentheses. *Data as of Nov. 9, 2012. §Standard & Poor's index constituent. Source: Standard & Poor's

Global Fixed Income Research.

Fallen angels typically outnumber rising stars. The fallen angels count exceeded the rising stars' in 14 of the past 25

years (1987-2011) (see chart 2). And although rising stars outpaced fallen angels in 2010, the usual pattern resumed in

2011, with fallen angels surpassing rising stars globally 45 to 38.


1038292 | 300098418


Chart 2

Profile Of Potential Rising Stars

As of Nov. 9, 2012, 23 globally rated entities showed the greatest potential to achieve rising star status. Together, these

entities had US$185.6 (€145.4) billion in rated debt. Since our most recent report, we added two entities and removed

two entities. We added Continental Resources Inc. and ITV PLC after Standard & Poor's assigned positive ratings

outlooks to both companies. We removed eAccess Ltd. after Standard & Poor's placed the rating on CreditWatch

developing, and we removed Grupo Petrotemex S.A. de C.V. (Alpek S.A.B. de C.V.) after it achieved rising star status

(Standard & Poor's raised the long-term rating to 'BBB-' from 'BB+').

Geographically, the U.S. continues to account for a large number of the potential rising stars, with 15 (65%) of the 23

issuers, followed by Europe with four issuers (17%).

The transportation and media and entertainment sectors have the most potential rising stars, with four issuers each

(see chart 3). All other sectors account for one or two issuers each.


1038292 | 300098418


Chart 3

In total, eight of the 23 potential rising stars are members of Standard & Poor's equity indices: four in the S&P 500

Index and four in the S&P Midcap 400 Index.

We define potential rising stars as entities that Standard & Poor's may upgrade to investment grade. These issuers are

currently rated 'BB+', and the rating either has a positive rating outlook or is on CreditWatch positive. A positive

outlook or a CreditWatch positive placement is a good leading indicator of actual upgrades. Standard & Poor's Global

Fixed Income Research published a long-term study that corroborates this (see "CreditWatch And Rating Outlooks

Provide Powerful Warning Signals," published Aug. 7, 2007). The CreditWatch status and rating outlook are strong

predictors of rating actions, both in the aggregate and broken down by rating category, region, or sector. For example,

the study showed that, on average, 46% of 'BBB' rated companies with positive outlooks were upgraded within 13

months, and 61% of companies with ratings on CreditWatch positive were upgraded within eight months.

The number of global potential rising stars correlates with business cycles--a general peak at or near the beginning of a

recession, a sharp decline during a recession, and a gradual increase during a recovery period (see chart 4). Based on

this relationship, as the economy grows, we expect rising star potential to slowly increase to an eventual peak at some

point in the middle of the current business cycle. However, as history suggests, deviations could occur.


1038292 | 300098418


Chart 4

Returns And Spreads Among Rising Stars

Ongoing surveillance of entities with rising star potential is important for bondholders because the value of their

holdings could change if Standard & Poor's upgrades the rising stars. Moreover, from the issuer's perspective, the cost

of capital generally declines significantly across the rising star threshold. Standard & Poor's ratings play a critical role

in determining the margins issuers pay above risk-free U.S. Treasuries to access credit markets. The threshold between

investment-grade ratings ('BBB-' or higher) and speculative-grade ratings ('BB+' or lower) has important market

implications for the cost of borrowing among issuers. For issuers in the 'BBB' rating category ('BBB+', 'BBB', and

'BBB-'), bond spreads were 184 basis points (bps) to 257 bps greater than the benchmark five-year Treasury yield

during the 12 months ended Oct. 26, 2012. Borrowing spreads expand by 373 bps to 538 bps more than Treasuries for

issuers in the 'BB' rating category ('BB+', 'BB', and 'BB-') in the same period (see table 2 and chart 5).

Table 2

Impact On Borrowing Costs By Threshold Rating Category

Rating Minimum spread Maximum spread

BBB 184 257

BB 373 538


1038292 | 300098418


Table 2

Impact On Borrowing Costs By Threshold Rating Category (cont.)

The spread data is expressed in basis points. Option-adjusted spread ranges listed for U.S. nonfinancial and financial entities in the period Oct. 31,

2011 - Oct. 26, 2012.

Chart 5

Business And Financial Risk Profiles Among Potential Rising Stars

Among the 23 global potential rising stars as of October 8, we list business and financial risk scores for 18 nonfinancial

entities according to Standard & Poor's latest available issuer rankings (see table 3). We further rank companies with

the same rating and outlook by Standard & Poor's opinion of credit quality based on business risks for

investment-grade companies and on financial risks for speculative-grade companies. Business risk assessments are

based on factors such as country risk, industry statistics, company position, and profitability/peer group comparison.

The financial risk assessment is based on factors such as accounting, governance/risk tolerance, cash flow adequacy,

capital structure/asset protection, and liquidity/short-term factors. Corporate business risk is categorized as excellent,

strong, satisfactory, weak, or vulnerable. Financial risk is categorized as minimal, modest, intermediate, aggressive, or

highly leveraged. Both qualifications refer to the companies' status-quo characteristics without taking into account any

extraordinary state support. Of the 18 nonfinancial entities for which business and financial risk assessments are


1038292 | 300098418


available, all have business risks of satisfactory or higher.

Table 3

Distribution Of Risk Assessments For Nonfinancial Potential Rising Stars

--Financial risk profile--

Business risk profile Minimal Modest Intermediate Aggressive Significant Highly leveraged

Excellent

Strong 1 1

Fair 1 4 3

Satisfactory 1 7

Weak

Vulnerable

Data as of Nov. 9, 2012. Source: Standard & Poor's Global Fixed Income Research.

Table 4

Movements in Credit Default Swaps (CDS) Pricing Among Potential Rising Stars

--% change from--

Entity Country Subsector

Five-year CDS spreads as

of Nov. 9, 2012 (bps)

30 days

ago

Beginning of

2012 A year ago

Jabil Circuit Inc. U.S. High technology 289 1.05 3.96 7.04

TRW Automotive Inc. U.S. Automotive 270 4.25 (34.62) (30.59)

Ford Motor Co. U.S. Automotive 249 2.89 (42.09) (41.96)

Interpublic Group of

Cos. Inc.

U.S. Media and

entertainment

185 12.12 (28.02) (22.92)

Data as of Nov. 9, 2012. CDS--Credit default swaps. Bps--Basis points. Sources: Standard & Poor's Global Fixed Income Research and Markit

Group Ltd. (data from this source does not constitute investment advice and cannot be relied on to make investment decisions).

We closely monitor issuers as they ascend to the rising stars status in order evaluate the size of the ratings transitional

movements. In terms of becoming a rising star, the smallest incremental upward movement would be from the highest

speculative-grade rating to the lowest investment-grade rating (from 'BB+' to 'BBB-'). This transition bucket captures

79.17% of our rising stars (see table 5).

Table 5

Rising Stars Matrix (%)

Rating* AAA AA+ AA AA- A+ A A- BBB+ BBB BBB-

BB+ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 79.17

BB 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.17 8.33

BB- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.17

B+ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.17

B 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

B- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CCC/C 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

*The ratings may not depict the current rating on the issuer. Data as of Nov. 9, 2012. Source: Standard & Poor's Global Fixed Income Research.


1038292 | 300098418


Table 6

'BB+' Rated Issuers On CreditWatch Positive

Subsector Issuer Country

Debt

amount

(mil.

US$)

S&P

equity-based

index

Business

risk

Financial

risk Rationale

Insurance Amerigroup

Corp.*

U.S. 475 S&P Mid-cap

400

-- -- The positive CreditWatch placement reflects

the support and guarantees that Amerigroup

Corp. will receive for its existing 7.5% senior

notes due on 2019 from WellPoint Inc. after the

acquisition is completed. Standard & Poor's

Ratings Services will check Amerigroup's

operating performance and financial condition,

as well as the credit structure within WellPoint's

management, which if satisfactory may lead to

Standard & Poor's raising the rating up to four

notches--to be consistent with A-/Stable/--

counterparty credit rating on WellPoint.

Data as of Nov.9, 2012. Source: Standard & Poor’s Global Fixed Income Research.

Table 7

'BB+' Rated Issuers With Positive Outlooks

Subsector Issuer Country

Debt

amount

(mil.

US$)

S&P

equity-based

index

Business

risk

Financial

risk Rationale

Automotive Ford Motor

Co.*

U.S. 84,057 S&P 500 Fair Significant The outlook revision reflects,

among other things,

Standard & Poor's Ratings

Services view that Ford will

act with increasing

decisiveness and

commitment to restructure

its offices in Europe to

increase profitability amid

prospects for several more

years of weak vehicle sales

there. Ford performance in

North America continues to

support good overall

automotive cash flow and

profitability. The positive

outlook reflects Standard &

Poor's view that there is a

one-in-three chance that it

could raise the corporate

credit rating on Ford to

investment grade within 18

months--although this is not

likely before late 2013.


1038292 | 300098418


Table 7

'BB+' Rated Issuers With Positive Outlooks (cont.)

Automotive TRW

Automotive

Inc.

U.S. 1,960 Fair Intermediate The outlook revision reflects

Standard & Poor's view of

TRW's firm competitive

position in the global

automobile market.

Furthermore, Standard &

Poor's may upgrade TRW to

investment grade within a

year if the company reports

continuous free cash

generation from operations,

high profitability, modest

leverage, and strong

liquidity, provided the

uncertainties arising from the

ongoing antitrust

investigation in Europe are

resolved, the company's

ability to navigate the

eurozone's very weak

economy remains intact, and

its strategy for dealing with

the 2014 debt maturities

proceeds as planned.

Bank Banco

Daycoval S.A.

Brazil 600 The positive outlook reflects

Standard & Poor's view that

it could upgrade Daycoval if

the company sustains

improvements in its business

position over the medium to

long term amid strong capital

levels and healthy asset

quality metrics.

Bank Grupo ACP

Inversiones y

Desarrollo

Peru 85 The positive outlook reflects

Standard & Poor's

expectation that Grupo ACP

will receive sizable dividends

from Mibanco, its core

subsidiary (and smaller

dividends from other

subsidiaries), that will allow it

to repay its debt.


1038292 | 300098418


Table 7


High technology Fidelity

National

Information

Services Inc.*

U.S. 4,500 S&P 500 Satisfactory Aggressive The revised rating outlook

on Fidelity National

Information Services Inc.

(FIS) reflects Standard &

Poor's view of the company's

good market position,

consistent profitability, and a

more balanced financial

policy. This will lead to

near-term improvement in

debt-protection measures

and support an improvement

in FIS' financial risk profile. A

strategic focus on largely

organic growth will enable

additional near-term

improvement in the

company's leverage. In

addition, the company

significantly addressed and

extended its 2014 debt

maturity, and it on track to

unsecure its first-lien debt.

High technology Jabil Circuit

Inc.*

U.S. 1,612 S&P 500 Fair Intermediate The positive rating outlook

reflects the potential for an

upgrade if Jabil can sustain

leverage at current levels,

while maintaining its

moderate financial policies

and adequate liquidity in an

industry known for revenue

and earnings volatility, and

relatively low average

returns on capital.

Homebuilders/real

estate companies

Colonial

Properties

Trust

U.S. 551 Fair Intermediate The positive rating outlook

on Colonial Properties

reflects Standard & Poor's

expectation for continued

strengthening in the

company's debt protection

measures from favorable

operating conditions and

sustained improvements in

asset quality from further

portfolio repositioning.

Insurance Zenith National

Insurance

Corp. (Fairfax

Financial

Holdings Ltd.)

U.S. 67 The positive outlook reflects

Standard & Poor's view of

Zenith's importance to the

group, which incorporates

Zenith's capitalization

relative to that of the

consolidated group and the

company's business and

operation in geographic

regions consistent with

Fairfax's growth strategy.

Zenith also has a strong

competitive position

underscored by a strong

track record in producing

favorable direct loss ratio

relative to its peers'.


1038292 | 300098418


Table 7


Integrated oil and

gas

PT Pertamina

(Persero)

Indonesia 4,000 Fair Significant The rating outlook on PT

Pertamina is consistent with

that on the long-term

sovereign credit rating on

Indonesia. We expect that

the company will remain the

government's primary

vehicle for distributing

subsidized fuel throughout

Indonesia, given its

integrated operations,

dominance in the country's

upstream and downstream

oil and gas segments, and the

strong demand prospects for

energy in the country.

Media and

entertainment

Interpublic

Group of Cos.

Inc.*

U.S. 2,525 S&P 500 Satisfactory Significant The positive outlook reflects

the potential for a one-notch

upgrade during the next 12

months if Standard & Poor's

becomes confident that the

company can continue its

progress toward improving

profitability and credit

metrics, which will depend

on the economic outlook and

business unit operational

execution.

Media and

entertainment

ITV PLC§ U.K. 1,101 Satisfactory Significant The positive outlook reflects

the possibility of a single

notch upgrade in the next 12

months, based on the

company's strong credit

metrics and steady business

operations and performance.

Standard & Poor's views

adjusted debt to EBITDA of

about 2.5x and free operating

cash flow of more than 10%

as commensurate with an

investment-grade rating.

Media and

entertainment

Las Vegas

Sands Corp.

U.S. 12,870 Satisfactory Significant The positive outlook reflects


an upgrade is possible based

on the company's current

performance expectations,

particularly in the event of a

strong ramp-up of Sands

Cotai Central. Standard &

Poor's could upgrade the

company to investment

grade if management

proposes a financial policy

around its tolerance for

leverage that is aligned with

the leverage threshold at a

'BBB-' rating.


1038292 | 300098418


Table 7


Metals, mining, and

steel

Steel Dynamics

Inc.*

U.S. 2,388 S&P Mid-cap

400

Satisfactory Significant The positive outlook reflects


the company's end markets

should continue to slowly

recover and this could result

in credit metric being

maintained at a level

consistent with a higher

rating, including debt to

EBITDA of less than 3x and

funds from operations (FFO)

to total debt of more than

30%.

Oil and gas

exploration and

production

Continental

Resources Inc.§

U.S. 2,900 Fair Significant The positive rating outlook

on Continental Resources

reflects the possibility that

Standard & Poor's could

upgrade Continental

Resources if the company

continues to increase

production and reserves

while maintaining a

conservative capital

structure and moves closer

toward spending within its

cash flows.

Oil and gas

exploration and

production

HollyFrontier

Corp.*

U.S. 350 S&P Mid-cap

400

Fair Modest The upward revision of the

rating outlook on U.S.-based

petroleum refiner and

marketing company

HollyFrontier Corp. reflects

the company's long track

record of being one of the

most profitable refineries in

the U.S. coupled with better

profitability and low financial

leverage metrics. The better

financial performance is also

attributed to favorable

pricing on West Texas

Intermediate crude (WTI)

relative to Brent and

Louisiana Light Sweet crude.

Retail / restaurants Sally Beauty

Holdings Inc.*

U.S. 3,200 Satisfactory Significant The positive outlook reflects

our view that Sally Beauty

would maintain its positive

operating momentum, with

organic sales growth of

9%-11%, positive

comparable-store sales, and

modest gross margin

improvement, thereby

resulting in improving credit

metrics over the near term.

We could raise the rating if

the company were to

improve and sustain debt

leverage in 2.5x area.


1038292 | 300098418


Table 7


Sovereign Indonesia

(Republic of)

Indonesia 56,285 The positive outlook reflects

the likelihood of an upgrade

if inflation is tamed while

balance sheet improvements

continue, likely in

combination with successful

implementation of parts of

the government's fiscal,

foreign direct investment

support, and allowing

subsidy cuts without

reversing recent

improvements in inflation,

and structural reform

agenda. The outlook also

reflects continuing

improvements in the

government's balance sheet

and external liquidity, a

resilient economic

performance, and cautious

fiscal management.

Transportation Aeroporti di

Roma SpA

Italy 34 Strong Highly

Leveraged

The positive outlook on

Italy-based airport operator

Aeroporti di Roma reflects

the company's improved

credit measures following its

new €400 million syndicated

term loan, which would be

adequate to repay Tranche

A1 of the debt its finance

subsidiary holds. The term

loan reduces the liquidity

pressure that the company

has been experiencing. There

is a possibility of an upgrade

if the company's credit

measures improve such that

the adjusted FFO-to-debt

ratio remains higher than

12% on a sustained basis.

Transportation Brussels

Airport Holding

S.A./N.V.

Belgium 2 Strong Aggressive The upward revision of the

rating outlook on Brussels

Airport Holdings followed

the recent improvement in

the group's credit metrics

and Standard & Poor's

expectation that the

company will maintain FFO

to debt of more than 12% in

the near term and 13% in

2013. Further, the outlook

revision also reflects

Standard & Poor's

expectation that the group

would extend its debt

maturity profile by keeping

its debt level at the current

level.


1038292 | 300098418


Table 7


Transportation Kansas City

Southern*

U.S. 2,564 S&P Mid-cap

400

Satisfactory Significant The positive outlook reflects

the Kansas City Southern's

credit metrics and liquidity,

which have continued to

improve as a result of

increasing earnings, debt

reduction, and reduced

interest expense. Standard &

Poor's expects that the

company's revenues and

earnings will continue to

strengthen over the next few

quarters and into 2013 due to

better pricing, rising volumes

(particularly in Mexico), and

improved operating

efficiency.

Utility Edison SpA Italy 2,299 Satisfactory Significant The positive outlook reflects


Edison's stronger integration

into Electricité de France

S.A. (EDF) could have a

positive effect on the rating

on Edison in the coming

year, based on Standard &

Poor's criteria on the link

between the parent and the

subsidiary. Standard & Poor's

expects Edison to derive

benefits from EDF's

operations, strategy, control,

and management. Once EDF

effectively gains full

managerial control of Edison,

we could consider raising the

long-term rating and

stand-alone credit profile

(SACP) on Edison.

Utility Western Gas

Partners L.P.

U.S. 1,170 Fair Intermediate The positive outlook on

Western Gas Partners

reflects the partnership's

strong growth potential,

mostly fee-based business,

and continued moderate

financial leverage. Standard

& Poor's could consider an

upgrade during the next 12

months if the partnership

continues to grow while

maintaining a predominantly

fee-based model with debt to

EBITDA of less than 3.5x.

Note: The parent companies are listed in parentheses. *Denotes Standard & Poor's equity-based index constituent. §Indicates an issuer added to

the list. †Denotes an issuer whose outlook or CreditWatch has changed. Data as of Nov. 9, 2012. Source: Standard & Poor’s Global Fixed Income

Research.

Related Criteria And Research

• Alpek S.A.B. de C.V. And Its Notes Of Up To $600M Rated 'BBB-', Petrotemex Upgraded To 'BBB-' From 'BB+',

Outlook Stable, Nov. 8, 2012.)


1038292 | 300098418


• CreditWatch And Rating Outlooks Provide Powerful Warning Signals, Aug. 7, 2007

• A Closer Look At Industrials Ratings Methodology, Nov. 13, 2006

• A Closer Look At Industrials Ratings Methodology: Accounting And Financial Reporting, Nov. 13, 2006

• A Closer Look At Industrials Ratings Methodology: Capital Structure/Asset Protection, Nov. 13, 2006

• A Closer Look At Industrials Ratings Methodology: Cash Flow Adequacy, Nov. 13, 2006

• A Closer Look At Industrials Ratings Methodology: Liquidity, Nov. 13, 2006

• Industrials' Business Risk/Financial Risk Matrix--A Fundamental Perspective On Corporate Ratings, April 7, 2005

Temporary contact numbers: Diane Vazza (646) 752-5369; Gregg Moskowitz (917) 232-3192


1038292 | 300098418


S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P

reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites,

www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed

through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at

www.standardandpoors.com/usratingsfees.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective

activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established

policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain

regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P

Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any

damage alleged to have been suffered on account thereof.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and

not statements of fact. S&P's opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase,

hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to

update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment

and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does

not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be

reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives.

No content (including ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof

(Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system,

without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used

for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents

(collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for

any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or

maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR

IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A

PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING

WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no

event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential

damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by

negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Copyright © 2012 by Standard & Poor's Financial Services LLC. All rights reserved.


1038292 | 300098418

Documents

Credit Trends: Rising Stars In Emerging And …online.wsj.com/public/resources/documents/SANDPbonds...8/28/2012 Gazprombank (OAO Gazprom ) BBB- BB+ Bank Russia 6,252 8/13/2012 Tennessee