Bangkok--24 Dec--Standard & Poor's
Standard & Poor's composite spreads tightened across the board on Friday, compressing the investment-grade spread to 544 basis points (bps) and the speculative-grade spread to 1,689 bps after widening to new five-year records mid-week. By rating, spreads are 6% tighter, with the 'AA' spread at 354 bps, 'A' at 472 bps, 'BBB' at 670 bps, 'BB' at 1,180 bps, 'B' at 1,817 bps, and 'CCC' at 3,221 bps.
Also, industry spreads tightened across the board by an average of 4%, leaving financial institutions at 761 bps, banks at 586 bps, industrials at 941 bps, utilities at 539 bps, and telecommunications at 788 bps.
With speculative-grade defaults on the rise, a higher preponderance of credit downgrades, and a general malaise about the future of the economy, we expect spreads to remain at their elevated levels for some time until confidence is restored to the market.
Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760