S&P reports two fallen angels in April, bringing tally to four in 2010

By Susanna Moon

Chicago, April 28 - Standard & Poor's said it downgraded two issuers, Gulf Investment Corp. G.S.C. and Phillips-Van Heusen Corp., to speculative grade from investment grade since its most recent fallen angels report.

This brings the 2010 year-to-date tally of fallen angels to four issuers, accounting for rated debt worth $2.79 billion, according to the agency.

"Our tally of global potential fallen angels decreased by five since our previous report to 66 issuers with $199.52 billion, or €147.94 billion, in rated debt," Diane Vazza, head of S&P's global fixed-income research, said in an agency statement.

"Since last month, we removed eight issuers from our list and added another three," Vazza noted.

SLM Corp., also known as Sallie Mae, remains the largest potential fallen angel this month, with $36.32 billion in rated debt, the agency noted.

The leading global corporate fallen angel by rated debt volume is Gulf Investment, a government-related entity with $1.04 billion in rated debt, the agency said.

Fallen angels are issuers downgraded to a speculative-grade rating, or BB+ and lower, from an investment-grade rating, or BBB- and higher.

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