Bangkok--30 Dec--Standard & Poor's
Standard & Poor's composite spreads widened marginally on Friday, leaving the investment-grade composite at 543 basis points (bps) and the speculative-grade composite at 1,672 bps. By rating, the 'AA', 'A', and 'BBB' spreads expanded 6 bps to 358 bps, 468 bps, and 674 bps, respectively. On the speculative-grade side, 'BB' expanded 1 bp to 1,172 bps, 'B' expanded 3 bps to 1,815 bps, and 'CCC' tightened 1 bp to 3,389 bps.
Industry spreads widened a bit across the board, by an average of 6 bps. Financial institutions are at 769 bps, banks are at 580 bps, industrials are at 940 bps, utilities are at 543 bps, and telecommunications are at 779 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:
Adam Tempkin, New York (1) 212-438-7530, [email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760