Moody’s: Global Corporate Sector Faces Significant Recovery Challenges

New York, July 14, 2009 -- Despite general signs that the global economy
is stabilizing, most corporate sectors face significant hurdles on their
path to economic recovery, said Moody's Investors Service in the first of
a series of new reports that look at the topic of recovery from a global
perspective.

"Overall, conditions remain weak globally for the consumer, primarily for
the same reasons as in the U.S.," said Moody's Senior Managing Director
Mike Rowan. "Rising unemployment, reduced access to credit, and negative
trends in wealth due to falling asset prices all weigh heavily on most
developed economies."

The ratings agency's special report provides an overview of the global
economic outlook and addresses key issues across various industries such
as: how today's credit picture differs from that of a few months ago,
whether improvement in credit conditions is well-established or
precarious, and conditions that must be in place to improve credit
conditions further.

"Despite some encouraging trends, a total economic recovery is still
early," said Rowan. For instance, as a tumultuous year for automotive
manufacturers continues with pockets of improved sales figures in some
regions, Moody's is maintaining its forecast for a 13% drop in global
sales volumes in 2009, expecting car sales to range from 55 to 57 million
vehicles.

For retail, the credit picture remains challenged, with limited evidence
of recovery as consumers' ability and propensity to spend remain weak,
said Moody's. At the same time, the consumer durable sector remains
vulnerable to further economic setbacks, rising unemployment, and the
potential for higher energy prices and interest rates. 

In addition, while the housing downturn appears to be showing signs of
stabilization, a closer look at the indicators reveals a more sobering
state of the industry, especially for the North American homebuilders,
said Moody's. Elsewhere, in Brazil and China, growth seems to be back on
track though the economic downturn and credit availability may still pose
an impediment to a more robust and sustained recovery.

For the media industry, spending on state and local political races, the
2010 World Cup, and a potential peak in the U.S. unemployment rate by
mid-2010 offer hope that advertising trends will improve as the next year
progresses, said Moody's. While the European ad markets are also soft
with declines in a similar range as the U.S., Asia and Latin America are
holding up better and in some cases, even growing.

This report is the first in the "Economic Recoveries" series of
publications from Moody's Investors Service, which is available on
Moodys.com. Companion reports examining the economic recovery of
financial institutions, the public finance sector, and structured finance
will be published later this week.

A teleconference on this report will be held on Wednesday, July 15, at
10:00 AM EDT/15:00 BST/16:00 CET.

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