Bangkok--25 Dec--Standard & Poor's
Both Standard & Poor's composite investment-grade and speculative-grade credit spreads tightened 1% yesterday, leaving the spreads at 539 basis points (bps) and 1,693 bps, respectively. The 'AA' through 'B' credit spreads also tightened by 1%, leaving 'AA' at 349 bps, 'A' at 464 bps, 'BBB' at 669 bps, 'BB' at 1,188 bps, and 'B' at 1,831 bps. On the other hand, the 'CCC' spread widened by about 1% to a new five-year record of 3,343 bps.
Industry spreads also tightened marginally across the board, leaving financial institutions at 760 bps, banks at 578 bps, industrials at 942 bps, utilities at 539 bps, and telecommunications at 783 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