Bangkok--2 Feb--Standard & Poor's
Standard & Poor's investment-grade composite spread widened marginally yesterday to 475 basis points (bps), while its speculative-grade counterpart tightened 48 bps to 1,418 bps. By rating, the 'AA' and 'A' spreads widened to 331 bps and 404 bps, respectively, while the remaining spreads tightened, with 'BBB' now at 610 bps, 'BB' at 910 bps, 'B' at 1,518 bps, and 'CCC' at 3,108 bps.
With the exception of financial institutions, which widened marginally to 700 bps, industry spreads tightened across the board, leaving banks at 567 bps, industrials at 819 bps, utilities at 479 bps, and telecommunications at 582 bps, an average of 6 bps tighter than the previous day.
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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Mimi Barker, New York (1) 212-438-5054, [email protected]
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Diane Vazza, New York (1) 212-438-2760
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