S&P Global Credit Markets Digest -- ASIA-PACIFIC UPDATE.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 23, 2002

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

COMING UP: -- Sovereign Defaults: Moving Higher in 2003? -- Hong Kong's Property Sector Landscape Remains Challenging -- Higher Ratings for Property Construction Project Financing -- Will Property Trusts Work in Hong Kong? -- Standard & Poor's Survey Finds Significant Erosion in U.S.

Corporate Pension Funding -- European Homebuilders Capitalize on Strong Housing Markets -- Property Tax: The Underused Tax of Mexican Municipalities -- European Local Government Financing Systems -- Accounting Treatment of Securities in Latin America -- Analytical Tools and Methodologies for Assessing U.S. Utilities -- The Credit Costs of Partial Electric Restructuring

PUBLISHED:

RESEARCH REPORTS

CORPORATES -- Three Similar Electric Utilities, Three Different Ratings -- Pennsylvania Electric Deregulation Enters the Next Phase -- Industry Report Card Releases on Project Finance -- U.S. Legal Criteria for "Recycled" Special-Purpose Entities -- Industry Report Card Released on U.S. Engineering and Construction

Companies -- Operational Risk Analysis Key to Assessing Global Servicers -- Industry Report Card Released on U.S. Capital Goods Sector

FINANCIAL SERVICES -- State Backing Helps Russian Vneshtorgbank Build Leading Role in

Market -- Australian Lenders' Mortgage Insurers Remain Sound Despite

Weakening Prospects -- Privatization Could Reduce Credit Recognition for Taiwan

Government Banks -- Omani Banks Vulnerable to Deterioration in Asset Quality and Tight

Funding Conditions -- Political Pressures Spoiling the Party for U.S. Health Insurers

PUBLIC FINANCE -- U.S. Housing Finance Agency Financial Ratios: Positive Results in

Changing Times -- Managing Negative Arbitrage in Housing Bonds -- U.S. Public Finance: 30 Years of Growth

LOCAL AND REGIONAL GOVERNMENTS -- Dependence on Core Industries is a Chief Factor in Russian Oil and

Gas Regions' Ratings -- Italian Provinces' Ratings Spread Could Widen

STRUCTURED FINANCE -- Standard & Poor's: Impressive Performance of NYC Co-op Market

Spurs CMBS Upgrades -- Italian Securitization Market to End 2002 On a High Note -- Proprietary Scoring: A Revolution in Modeling Residential-Mortgage

Risk -- Synthetic Risk Transfers Expanding Beyond CDO Market -- Synthetic Structured Financings: A Risk Management Tool for Japan

SOVEREIGNS -- Brave New World: The Next Generation of Mexican Public Management

RATING ACTIONS

CORPORATE RATINGS

-- Conexant Systems Inc. Corporate Credit Rating Lowered to 'B', Off Watch; Outlook Negative

-- Nuevo Energy Co. Ratings Placed On CreditWatch Following Acquisition Announcement

-- General Mills Inc.'s Senior Unsecured Notes Rated 'BBB+'

-- WCI Steel Inc. Ratings Lowered On Liquidity Concerns

-- Sodexho on WatchNeg Reflecting UK Subsidiary's Accounting Anomaly and Liquidity Concerns

-- Taiwan's Ritek Ratings Lowered to 'B+' Due to Weak Credit Measures; Outlook Negative

FINANCIAL SERVICES RATINGS

-- StanCorp Financial Group Inc.'s $250M Senior Notes Assigned 'BBB+'

Rating -- Ratings on Two Swiss Life Subsidiaries Lowered on Parent Strategy

Review; Outlook Developing on Swiss Life (U.K) -- Annuity & Life Reassurance Ltd. and Related Ratings Placed on

CreditWatch Negative -- Taiwan Fire & Marine Insurance Co. Ltd. Rated 'BBB'; Outlook

Stable -- Cosmic Insurance Corp. Ltd. Rating Revised to 'R' Following

Regulatory Action

INFRASTRUCTURE FINANCE RATINGS -- Railtrack PLC's Bond Ratings Raised to 'AA/A-1+' Following EC

Decision on State Aid

PUBLIC FINANCE

-- Puerto Rico's $800 Million TRANs Rated 'SP-1', Weakened Cash

Position Cited -- Newly Rated Obligor College Housing Northwest's Refunding Bonds

Rated 'BBB' on Strong Demand -- Forum Health, OH Bonds Rated 'A-'; SPUR Lowered to 'A-'

SOVEREIGN RATINGS -- Japan's Ratings Affirmed After Failed Auction; Outlook Remains

Negative -- India Long- and Short-Term Local Currency Ratings Lowered Due to

Growing Debt Burden

LOCAL AND REGIONAL GOVERNMENT RATINGS -- Province of Saskatchewan 'A+' Ratings Affirmed; Outlook Stable -- City of Geneva Long-Term Ratings Affirmed at 'AA-'; Outlook Stable

STRUCTURED FINANCE RATINGS -- Banc of America Large Loan Inc. Mortgage Certificates 2002-FLT2

Assigned Preliminary Ratings -- Project Funding Corp. II Ratings Placed on CreditWatch Negative -- Crest Clarendon Street 2002-1 Ltd. Notes and Preferred Shares

Assigned Ratings -- Merrill Lynch Mortgage Investors Inc. Ratings Raised and Affirmed

on Various Series -- Ratings on Three JPM Capital Trust I-Related Synthetic

Transactions Lowered and Off Watch -- Rating on Eirles Two Ltd.'s Series 17 Credit-Linked Notes Lowered

to 'BBB-' -- Preliminary Ratings Assigned in Telecom Italia SpA's EUR1.16

Billion CMBS Transaction -- Citibank Credit Card Issuance Trust 2002-A5 Notes Assigned

Preliminary 'AAA' Rating

RESEARCH ANALYSIS

CORPORATES -- SPX Corp. -- Amgen Inc. -- WPP Group PLC -- Sophia -- Head N.V. -- MEPC Ltd.

FINANCIAL SERVICES -- Excellus Health Plan, Inc./MedAmerica Insurance Co./MedAmerica

Insurance Co. of New York -- Menatep St. Petersburg -- Credit du Nord S.A. -- Abeille Assurances

LOCAL & REGIONAL GOVERNMENTS -- Loiret (Department of) -- Greater London Authority -- Meuse (Department of)

SOVEREIGNS -- Botswana (Republic of) -- Germany (Federal Republic of) -- European Coal & Steel Community

STRUCTURED FINANCE -- New Issue: Nihon (Hong Kong) Co. Ltd. -- New Issue: Structured Asset Mortgage Investments Trust 2002-AR3 -- New Issue: Structured Asset Securities Corp. -- New Issue: Residential Asset Securitization Trust 2002-A10 -- New Issue: Thornburg Mortgage Securities Trust 2002-3 -- New Issue: Residential Accredit Loans Inc. -- New Issue: Amortizing Residential Collateral Trust -- New Issue: Washington Mutual Mortgage Securities Corp.