| Abstract: | The rated U.S. consumer products universe has an array of subsectors, including packaged food, alcoholic and nonalcoholic beverages, tobacco, household products, apparel, personal care, appliances, lawn care, home and office furniture, agriproducts, commodity foods, cosmetics, and service companies. About 31% of companies in the sector are in the more stable investment-grade category, with the remaining 69% in the more volatile speculative-grade category. In 2007, downgrades outnumbered upgrades in the sector by about three to one, and this negative trend has continued into the first nine months of 2008, with a ratio of about 2.5 to 1. About 37% of issuers in the sector had either a negative outlook or were on CreditWatch with negative implications. Alternatively, just close to 7%
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