Bangkok--24 Nov--Standard & Poor's
Standard & Poor's investment-grade composite spread remained unchanged on Friday at 220 basis points (bps), while its speculative-grade counterpart tightened by one basis point to 693 bps. By rating, the 'AA', 'A', 'BBB', and 'BB' spreads remained unchanged at 150 bps, 188 bps, 275 bps, and 510 bps, respectively. The 'B' spread tightened one basis point to 687 bps and 'CCC' tightened 4 bps to 1,086 bps.
Spreads were mixed by industry, with banks widening 2 bps to 308 bps, financial institutions and industrials tightening one basis point each to 379 bps and 353 bps, respectively, and utilities and telecommunications remaining unchanged at 217 bps and 336 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