Fitch Corporate Bond Default Rts I-Grade 0.05%; S-Grade 2.95%.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 15, 2001

Fitch, the international rating agency, today released its first study of Fitch-rated corporate bond defaults. The average annual default rate for all Fitch-rated global corporate obligors was 0.43%. For investment-grade issuers, the average annual default rate was 0.05%, compared with 2.95% for high yield, or speculative-grade, issuers.

Fitch's corporate default study shows that "for Fitch-rated corporate bonds, default rates are similar to or lower than those reported by the other major rating agencies," said Stephanie Mah, director.

According to the study, average annual default rates ranged from .02% for 'A' rated obligors to 26.3% for issuers in the 'CCC' to 'C' category. "The study shows that default risk increases as you move down the rating scale," says Mariarosa Verde, senior director of credit market research.

The corporate bond default study covers 1990 through 2000. From Jan. 1, 1990 through Dec. 31, 2000, 49 of the 2,639 Fitch-rated issuers defaulted on their long-term debt. The years 1990 and 1991 experienced the highest annual default rates, 1.7% and 1.9%, respectively.

The complete 'Corporate Bond Default Study' is available on the Fitch Web site 'www.fitchratings.com' and can be found in the criteria reports section of the Web page corresponding with the Corporate sector or by contacting Market Services at 800/853-4824.