Bangkok--23 Sep--Standard & Poor's
Standard & Poor's investment-grade and speculative-grade spreads remained largely unchanged yesterday, at 231 basis points (bps) and 740 bps, respectively. By rating, the 'AA' spread tightened 2 bps to 153 bps; 'A' and 'BBB' remained unchanged at 193 bps and 296 bps, respectively; 'BB' tightened one basis point to 515 bps; 'B' tightened 2 bps to 712 bps; and 'CCC' tightened 3 bps to 1,134 bps.
Spreads were mixed by industry, with financial institutions and banks tightening 3 bps each to 402 bps and 321 bps, respectively. Industrials and utilities remained unchanged at 385 bps and 222 bps, respectively, and telecommunications widened marginally by one basis point to 325 bps.
Despite material tightening since their record highs in December 2008, the speculative-grade spread remains range-bound within 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:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760