HONOLULU, May 3, 2005: Kamakura Corporation announced today that its monthly index of troubled companies in the United States rose sharply for the fourth consecutive month, hitting 16.0% of the public company universe in April. The Kamakura troubled company index jumped up 2.4% from March, the largest single month increase since Kamakura first launched the troubled company index. The index is now at its highest level since September 2003. Kamakura classifies any company with a default probability of more than one percent as troubled.
"The Kamakura troubled company index indicates a serious decline in credit quality with its largest monthly jump on record," said Warren Sherman, Kamakura President and Chief Operating Officer. "The number of companies with default probabilities between 1% and 5% jumped very significantly to 9.6% of the universe, up from 8.1% in March. Companies with default probabilities between 5 and 10% were up 0.4% to 2.5% of the universe. Companies with default probabilities between 10% and 20% also rose 0.4% to 1.7% of the universe. The riskiest firms in the universe, those with default probabilities over 20%, rose 0.2% to reach 2.2% of the universe in April."