Bangkok--5 Nov--Standard & Poor's
Standard & Poor's investment-grade composite spread remained unchanged yesterday at 224 basis points (bps), while its speculative-grade counterpart tightened marginally to 702 bps. By rating, the 'AA' spread expanded 2 bps to 151 bps and 'A' and 'BBB' remained unchanged at 188 bps and 279 bps, respectively. The 'BB' spread widened 2 bps to 504 bps, 'B' remained unchanged at 681 bps, and 'CCC' expanded 6 bps to 1,112 bps.
By industry, financial institutions, banks, and telecommunications widened marginally to 384 bps, 301 bps, and 331 bps, respectively, while industrials and utilities remained unchanged at 362 bps and 216 bps, respectively.
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:
Mimi Barker, New York (1) 212-438-5054, [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]