Report title: Speculative Grade Liquidity Monthly Monitor - June 2008
from Moody's Global Credit Research
18 page (10572 word) report published Jun 17, 2008

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... in May once again exceeded upgrades by a wide margin, suggesting April s even split was a blip in the yearlong negative trend. Weaker cash flow amid the consumer-spending slowdown and higher prices for crude oil and other commodities is continuing to pressure the intrinsic liquidity of some speculative-grade issuers. Weaker cash flow is also having knock-on liquidity effects for some issuers contributing to the increased use of revolving credit lines and diminished headroom under financial covenants. Driven by these liquidity pressures, SGL downgrades in May topped upgrades by 14 to 4, seemingly confirming that April s balance between upgrades and downgrades (8 to 8) was not the beginni ng of a turnaround for speculative-grade issuers, which for the most part have seen liquidity deteriorate since the onset of the credit crisis last summer. The list of SGL downgrades for the mont h of May included Continental Airlines...

Report Type: SGL Monitor
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