Bangkok--26 Jan--Standard & Poor's
Standard & Poor's investment-grade composite spread widened 11 basis points (bps) yesterday, rising to 495 bps, while its speculative-grade counterpart remained unchanged at 1,486 bps. By rating, the 'AA' spread widened to 340 bps, 'A' to 421 bps, and 'BBB' to 632 bps, an average of 13 bps wider than Wednesday's figures. Most of the speculative-grade rating spreads widened marginally, with 'B' moving to 1,594 bps and 'CCC' widening to 3,112 bps. The 'BB' spread, on the other hand, tightened 3 bps to 972 bps.
Industry spreads widened across the board by an average of 13 bps, with financial institutions at 714 bps, banks at 573 bps, industrials at 848 bps, utilities at 497 bps, and telecommunications at 662 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.
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