Bangkok--26 Aug--Standard & Poor's Standard & Poor's U.S. investment-grade composite credit spread tightened marginally to 271 basis points (bps) from 272 for the previous two days. By comparison, this is more than 80% wider than the five-year moving average and 33% wider than at the beginning of the year. With continued pressure on financial institutions and banks, the investment-grade credit spread is expected to remain range-bound at present high levels. Standard & Poor's U.S. speculative-grade composite credit spread, on the other hand, widened to 781 bps, the widest spread seen since March 21, 2008, when the spread was 801 bps. By comparison, Friday's spread was 35% wider than at the start of the year and 83% wider than the five-year moving average. The speculative-grade credit spread is poised for continued volatility, commensurate with an escalation in speculative-grade defaults over the course of this year. Standard & Poor's composite rating category spreads tightened across the board in the investment-grade spectrum by 2 bps in the 'AA' category and 1 bp each in the 'A' and 'BBB' categories. On the speculative-grade side, however, spreads have widened by 6 bps each in the 'BB', 'B', and 'CCC' categories. Media Contact: David Wargin, New York (1) 212-438-1579, [email protected] Analyst Contacts: Diane Vazza, New York (1) 212-438-2760