Bangkok--5 Sep--Standard & Poor's Standard & Poor's U.S. investment-grade composite credit spread retracted to 275 basis points (bps) yesterday after Tuesday's sharp widening to 283 bps. By comparison, yesterday's spread was more than 82% wider than the five-year moving average and 35% 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, which has fluctuated between 775 bps and 796 bps in the past two weeks, also tightened to 789 bps. Speculative-grade credit spreads are poised for continued volatility, commensurate with an escalation in speculative-grade defaults over the course of this year. By rating category, 'B' and 'CCC' spreads tightened the most in the speculative-grade domain, to 846 bps and 1,328 bps, respectively. Although tighter than Tuesday's highs, both categories are more than 30% wider than their 12-month moving averages. Media Contact: Mimi Barker, New York (1) 212-438-5054, [email protected] Analyst Contacts: Diane Vazza, New York (1) 212-438-2760