Bankruptcies down in 2002 despite struggling economy

Through the first three quarters of this year 144 publicly traded companies filed for bankruptcy, according to a news release from Weiss Ratings Inc., an independent provider of ratings and analyses of financial companies, mutual funds and stocks. While high in historic terms, the number of corporate bankruptcies is on pace to fall short of the record 257 filings set in 2001.

Analysts say it's still too early to predict how 2003 will fare.

"The delicate health of the economy is readily apparent in the number of companies filing for Chapter 11," said Melissa Gannon, vice president of Weiss Ratings Inc. "While 2002 looks like it will be an improvement, it's a little early to start placing bets on 2003."

In reviewing more than 9,000 stocks, Weiss found that the sectors most vulnerable to continuing bankruptcies are airlines, Internet retail and telecommunications equipment. Weiss noted six companies among those sectors scoring very weak in its ratings, including Lucent Technologies Inc. and Nortel Networks Corp.

On the flip side, the sectors of banking, home building, managed health care, water utilities and tobacco received excellent or good ratings from Weiss.

Among Weiss Ratings' highest-rated common stocks in the nation is the Missouri health care equipment company Young Innovations Inc., based in Earth City. Other Missouri common stocks faring well are: BHA Group Holdings Inc., First Banks Amer Inc. and Sigma-Aldrich, which all received a B+ investment rating.