S&P Report Analyzes Size And Structure US Corporate Debt Market

Standard & Poor’s Global Fixed Income Research has conducted a study to estimate the size and structure of the rated US corporate debt market. The sample consists of US corporate instruments totaling $6.59 trillion, as of March 31, 2013.


Standard & Poor’s Global Fixed Income Research conducted a study to estimate the size and structure of the rated U.S. corporate debt market. Companies that Standard & Poor’s Ratings Services rates investment grade (‘BBB-‘ and higher) account for 67% of U.S. corporate debt by dollar amount, and nonfinancial issuers comprise 70% of rated debt outstanding, said an article published today by Standard & Poor’s Global Fixed Income Research, titled “Analyzing The Size And Structure Of The U.S. Investment-Grade And Speculative-Grade Corporate Debt Market In 2013.”
Our sample consists of U.S. corporate instruments totaling $6.59 trillion, as of March 31, 2013. By dollar amount of debt outstanding, the ‘A’ rating category is the largest with $2.3 trillion outstanding, the majority of which is from financial issuers. The ‘BBB’ rating category is the second largest with $1.5 trillion, while the ‘B’ category follows with $1.2 trillion.
“By issuer count, the ‘B’ rating category is the largest in the U.S. (with 34% of issuers in the ‘B’ category), though these companies tend to be much smaller on average than their investment-grade counterparts,” said Diane Vazza, head of Standard & Poor’s Global Fixed Income Research.
Across sectors, financial institutions (excluding insurance) account for 24% of total outstanding debt, followed by utilities (9%), and telecommunications (8%). Among investment-grade nonfinancial firms, the sectors with the largest total debt outstanding include utilities ($442 billion), consumer products ($308 billion), and telecommunications ($241 billion). Among speculative-grade nonfinancial issuers, media and entertainment ($340 billion), telecommunications ($275 billion), and health care ($201 billion) have the largest amount of total debt outstanding.
The report is available to subscribers of RatingsDirect at www.globalcreditportal.com and at www.spcapitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor’s public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.

Media Contact:
Ola Fadahunsi, New York (1) 212-438-5095, olayinka.fadahunsi@standardandpoors.com
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760

Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ relations@standardandpoors.com

Americas Customer Service:(1) 212-438-7280
Standard & Poor’s Ratings Services, part of McGraw Hill Financial (NYSE: MHFI), is the world’s leading provider of independent credit risk research and benchmarks. We publish more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities. With over 1,400 credit analysts in 23 countries, and more than 150 years’ experience of assessing credit risk, we offer a unique combination of global coverage and local insight. Our research and opinions about relative credit risk provide market participants with information and independent benchmarks that help to support the growth of transparent, liquid debt markets worldwide.

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