S&P Global Credit Markets Digest - European Update.

Business Editors

NEW YORK--(BUSINESS WIRE)--Standard & Poor's

Jan. 15, 2003--

EUROPEAN UPDATE

Here is the current lineup of top articles and research from Standard & Poor's:

UPCOMING PUBLICATIONS

-- U.S. Non-Financial Credit Quality

-- U.S. Power Industry Experiences Precipitous Credit Decline In 2002; Negative Slope Likely to Continue

-- Industry Report Card: U.S. Utilities

-- Industry Report Card: Oil & Gas

-- Industry Report Card: European Retail Sector

-- Rating Private Equity CFOs: Cash Flow Benchmarks

PUBLISHED:

RESEARCH REPORTS

CORPORATES

-- Management Actions Bolster ABB's Liquidity and Reduce

Vulnerability to Market Shocks

-- Industry Report Card Released on Project Finance

-- Economic, Geopolitical Concerns Heighten Credit Risk for North

American Chemical Sector

-- Industry Report Card: European Health Care

-- New Report Focuses on Bond Insurer Boards of Directors'

Standards and Practices

-- S&P Comments on Fuel Cell Technology

-- S&P Comments On U.S. Project Finance Sponsors, Contractor

Bankruptcies

-- S&P Comments on Husky Terra Nova's Rating Factors

GLOBAL FIXED INCOME RESEARCH

-- S&P Global Bond Markets' Weakest Links & Monthly Default Rates

-- 2003 Corporate Credit Quality: No Pop and No Fizz

-- U.S Economic Forecast: Good Riddance

-- S&P: Global Defaults Hit Record $157.3 Billion in 2002; EU and

Telecoms Hit Especially Hard

-- U.S. Commercial Paper Looks to Improve in 2003

FINANCIAL SERVICES

-- Standard & Poor's Sees Divergent Outlooks for North American

Financial Institutions

-- Report Says Funding Agreement-Backed Transactions Decreased in

the Second Half of 2002

-- Impact Of Increasing Household Debt, Mortgage Lending, and SME

Exposure on Korean Banks

-- Outlook Negative for Rated Italian Insurers, but Market

Conditions Are Improving

PUBLIC FINANCE

-- U.S. Public Finance Ratings Roundup: State Rating Changes

Dominated 2002

-- No Relief For States Under Bush Proposal; Credit Outlook

Remains Bleak

LOCAL & REGIONAL GOVERNMENTS

-- Canadian Provinces Weather Economic Slowdown, But Challenges

Remain

SOVEREIGNS

-- Italian Public Sector's Onetime Revenues Are No Substitute for

Fiscal Adjustment

-- Report: Canadian Bond Issuance Dives to All-Time Low in 2002

-- Sovereign Ratings Show Stability Over 28 Years, Says S&P Study

STRUCTURED FINANCE

-- Despite Solid Performance, French ABS Market Must Attract New

Issuers to Sustain Growth

-- Auto Loan Deals Drive Growth of French Securitization Market

as Issuers Continue to Innovate

-- Structured Finance Global Ratings Roundup Quarterly:

Fourth-Quarter Performance Trends

-- Spanish Securitization Market Set for 30% Growth in 2003

RATING ACTIONS

CORPORATE RATINGS

-- BAA PLC Bonds Ratings Lowered to 'A+' Due to Structural

Subordination; Corporate Credit Ratings Affirmed

-- Korea Midland Power Assigned 'BBB+' Rating; Outlook Stable

-- PDV America Inc.'s Ratings Downgraded; Remain on CreditWatch

Negative

-- Comcast Corp. $1.5 Bil Notes Rated 'BBB'; All Ratings Affirmed

-- Teck Cominco Still on CreditWatch Negative After Revised

Fording Proposal

-- Pioneer-Standard Electronics on Watch Negative, on Accord to

Sell Unit to Arrow Electronics

-- AMERCO Preferred Stock Lowered to 'D' From 'C'; Off Watch

-- Korea Hydro & Nuclear Power's Proposed US$200 Million

Eurobonds Rated 'A-'

-- Georgia-Pacific Corp. Announces Asbestos Charge, Expects

Breakeven 4th Quarter 2002 Earnings

-- Pioneer-Standard Electronics on Watch Negative, on Accord to

Sell Unit to Arrow Electronics

FINANCIAL SERVICES RATINGS

-- Travelers Property Casualty Corp. and Subsidiaries Ratings

Affirmed; Outlook Remains Negative

-- Security Benefit Life Insurance Co. 'AA-/A-1+' Ratings

Affirmed; Outlook Revised to Negative

-- Portuguese Insurer Seguros e Pensoes 'BBB+' Ratings Off Watch

and Affirmed; Outlook Negative

-- Axa Re Finance S.A. Ratings Lowered to 'BBB'; Ratings

LOCAL & REGIONAL GOVERNMENT RATINGS

-- The Australian National University Assigned 'AA+' Rating

-- Winnipeg Raised to 'AA' on Exit From Hydro; Off Watch

Positive; Outlook Stable

-- Rating on City of Guadalupe Raised to 'mxAA-'

-- French Region of Nord Pas De Calais Upgraded to 'AA-'; Outlook

Stable

SOVEREIGN RATINGS

-- Development Bank of Japan's JPY50 Billion Series 6 Zaito

Agency Bonds Rated 'AA-'

-- Philippines' US$1 Billion 9.0% Global Bonds Assigned 'BB+'

Rating

STRUCTURED FINANCE RATINGS

-- Alternative Loan Trust Ratings Affirmed on Eight Transactions

-- Credit Suisse First Boston Mortgage Securities Corp. Certs

Series 2002-FL2 Assigned Ratings

-- Australian Issuer PUMA Launches the First Global RMBS Deal for

2003

-- Class 'A' Notes on Three CMBS Deals on Watch Neg After J.

Sainsbury Rating Action

-- Rating in ABS Transaction Store Finance PLC on CreditWatch

Negative

-- Preliminary 'AAA' Ratings Assigned to BOT Lease's JPY15

Billion Series 3 Japanese ABS

PUBLIC FINANCE RATINGS

-- SMTC, Public Transport Provider for Greater Toulouse, Affirmed

at 'AA-'; Outlook Stable

RESEARCH ANALYSIS

CORPORATES

-- Ross Stores Inc.

-- Kerzner International Hotels Ltd.

-- United Business Media PLC

-- EPCOS AG

-- Whirlpool Corp.

FINANCIAL SERVICES

-- Landesbank Rheinland-Pfalz Girozentrale

-- Compania Espanola de Seguros y Reaseguros de Credito y Caucion

S.A.

-- Banca Popolare di Milano

-- China International Reinsurance Co. Ltd.

-- Bank SinoPac

-- Asian Development Bank

-- Bank of Taiwan

-- Japan Finance Corp. For Municipal Enterprises

-- HSBC Republic Bank (Suisse) S.A.

-- Volvofinans, AB

PUBLIC FINANCE

-- SMTC (Syndicat mixte des transports en commun de

l'agglomeration toulousaine)