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Eastman Kodak Co. and casino operator MGM Mirage are among 283 US companies at the highest risk of default, according to Moody's Investors Service. Lear Corp, the world's No. 2 maker of automobile seats, also became one of the companies most at risk of defaulting in the first quarter, according to the latest Moody's report. The number of speculative-grade issuers on the ''Bottom Rung'' list compiled by Moody's has almost doubled from 157 a year earlier, the New York-based ratings company said in report published today. Moody's ''Bottom Rung'' is a new database and quarterly publication, the rating agency said. The list will be updated monthly. ''The current Bottom Rung list provides ample evidence of a severe default cycle,'' analysts David Keisman, Tom Marshella and Jennifer Brown wrote in the report. About 45 per cent of companies on the list will default on debt in the next year, Moody's says, which could include anything from filing for bankruptcy to missing debt payments. More than 23 per cent of all US speculative-grade companies are on the list, compared with 9 per cent before the credit crisis, Moody's said. So-called junk-graded companies worldwide defaulted on their bonds at a rate of 5.2 per cent in February, the rating firm said in a separate report last week, as $1.2 trillion of bank losses combined with the deepest economic slump since World War II to hamper borrowers' finances. Companies with exposure to weak consumer spending, such as auto, retail and media firms, are ''highly represented'' on the list, Moody's said. ''Any speculation, however informed, suggesting that Kodak is less than financially sound is irresponsible,'' said Kodak spokesman David Lanzillo. ''Kodak is financially solid, and we are taking the right actions to ensure that we remain a strong and enduring competitor.'' Moody's ranks speculative-grade debt below Baa3. ''Bottom Rung'' companies are ranked six steps lower at B3 with a negative outlook or on review for downgrade, or have probability of default ratings of Caa1 or lower, Moody's said. The exhaustive list is given below: | Issuer Name | Probability of Default Rating | Corporate Family Rating | Outlook | Total Rated Debt Outstanding (in billions) | Industry Sector | | Loading... | | Allison Transmission, Inc. | B3 | B3 | Negative | $4.60 | Automotive: Parts | | AMR Corp. | Caa1 | Caa1 | Negative | $1.62 | Transportation Services: Airline | | Building Materials Corporation of America | Caa1 | B3 | Negative | $1.55 | Manufacturing: Finished Products | | Chrysler LLC | Ca | Ca | Negative | $9.00 | Automotive: Passenger | | Citadel Broadcasting Corp. | Caa3 | Caa2 | Negative | $2.29 | Media: Broadcast TV & Radio Stations | | Claire's Stores, Inc. | Caa3 | Caa3 | Negative | $2.59 | Retail: Department Stores | | Dana Holding Corp. | Caa1 | Caa1 | Rating under review | $2.08 | Automotive: Parts | | Dole Food Company, Inc. | Caa1 | B3 | Negative | $1.51 | Natural Products Processor: Agriculture | | Eastman Kodak Co. | B3 | B3 | Negative | $2.10 | Technology: Hardware | | Ford Motor Co. | Caa3 | Caa3 | Negative | $31.55 | Automotive: Passenger | | Freescale Semiconductor, Inc. | Ca | Caa1 | Negative | $10.20 | Technology: Semiconductor | | General Motors Corp. | Ca | Ca | Negative | $38.56 | Automotive: Passenger | | Georgia Gulf Corp. | Caa2 | Caa2 | Negative | $1.98 | Chemicals: Commodity Chemical | | Hawker Beechcraft Acquisition Co. | B3 | B3 | Negative | $2.85 | Aircraft & Aerospace: Equipment | | Idearc, Inc. | Caa3 | Caa2 | Negative | $9.29 | Media Publishing: Books | | Lear Corp. | Caa2 | Caa2 | Rating under review | $2.30 | Automotive: Parts | | Level 3 Communications, Inc. | Caa1 | Caa1 | Rating under review | $1.87 | Telecommunications: Wireline | | Michaels Stores, Inc. | B3 | B3 | Negative | $3.93 | Retail: Specialty | | OSI Restaurant Partners, Inc. | Ca | Caa1 | Rating under review | $2.11 | Restaurants: Family Dining | | R.H. Donnelley Corp. | Caa2 | Caa1 | Negative | $3.48 | Media: Printing - Holdco | | Reader's Digest Association, Inc. | Caa3 | Caa3 | Negative | $2.21 | Media Publishing: Newspapers & Magazines | | Realogy Corp. | Caa3 | Caa3 | Negative | $7.56 | Services: Consumer | | Rite Aid Corp. | Caa2 | Caa2 | Negative | $6.80 | Retail: Drug Stores | | Source Interlink Companies Inc. | Caa1 | Caa1 | Negative | $1.63 | Media Publishing: Newspapers & Magazines | | Swift Transportation Co., Inc. | Caa1 | Caa1 | Negative | $2.98 | Transportation Services: Trucking | | Tenneco Inc. | B3 | B3 | Negative | $1.83 | Automotive: Parts | | Univision Communications, Inc. | B3 | B3 | Negative | $10.09 | Media: Diversified Media - Fc | | US Airways Group, Inc. | Caa1 | Caa1 | Negative | $1.60 | Transportation Services: Airline | | Visteon Corp. | Caa1 | Caa2 | Negative | $3.20 | Automotive: Parts | | Western Refining, Inc. | B3 | B3 | Negative | $1.40 | Energy: Oil - Refining & Marketing | | Sources: Moody's Investors Service |
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