Bangkok--17 Nov--Standard & Poor's
Standard & Poor's investment-grade and speculative-grade composite spreads tightened one basis point each on Friday, to 222 basis points (bps) and 699 bps, respectively. By rating, the 'AA' spread tightened one basis point to 149 bps, 'A' remained unchanged at 188 bps, and 'BBB' tightened 2 bps to 276 bps. The 'BB' spread remained unchanged at 506 bps, 'B' widened 2 bps to 686 bps, and 'CCC' tightened 2 bps to 1,099 bps.
Spreads were mixed by industry, with industrials tightening 2 bps to 358 bps, utilities tightening one basis point to 215 bps, and financial institutions, banks, and telecommunications expanding one basis point each to 383 bps, 303 bps, and 334 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]