Bangkok--28 Aug--Standard & Poor's
Standard & Poor's investment-grade and speculative-grade composite spreads remained unchanged yesterday at 244 basis points (bps) and 830 bps, respectively. By rating, the 'AA' spread expanded one basis point to 163 bps; 'A', 'BBB', and 'BB' tightened one basis point each to 206 bps, 316 bps, and 561 bps, respectively; 'B' tightened 5 bps to 789 bps; and 'CCC' tightened 6 bps to 1,318 bps.
By industry, financial institutions tightened 3 bps to 447 bps, while all other industries tightened one basis point each, to 365 bps for banks, 422 bps for industrials, 233 bps for utilities, and 343 bps for telecommunications.
Despite material tightening since their all-time highs reached in December 2008, the speculative-grade spread remains near some of the highest levels ever recorded in a default cycle, and the investment-grade spread continues to face pressure from financial institutions and banks. In addition, speculative-grade defaults continue to accelerate, as does the preponderance of credit downgrades. Because of these factors, 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 recessionary period.
Media Contact:
David Wargin, New York (1) 212-438-1579, [email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]