Bangkok--23 Jan--Standard & Poor'
Both Standard & Poor's investment-grade and speculative-grade composite spreads tightened yesterday, to 484 basis points (bps) and 1,486 bps, respectively. By rating, the 'AA' spread tightened 10 bps to 327 bps, while 'A' and 'BBB' tightened 13 bps each, to 411 bps and 617 bps, respectively. The speculative-grade rating spreads were mixed, with 'BB' and 'B' tightening to 975 bps and 1,589 bps, respectively, while 'CCC' widened to 3,095 bps.
Most of the industry spreads tightened, with financial institutions at 701 bps, industrials at 833 bps, utilities at 486 bps, and telecommunications at 618 bps. Banks remained unchanged at 556 bps.
With speculative-grade defaults accelerating, 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 as investors, the credit markets, and the economy cautiously tread through the current recession.
Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760