Bangkok--25 Nov--Standard & Poor's
Standard & Poor's investment-grade and speculative-grade composite spreads tightened marginally yesterday to 219 basis points (bps) and 691 bps, respectively. By rating, the 'AA' and 'A' spreads tightened one basis point each to 149 bps and 187 bps, respectively, and 'BBB' tightened 2 bps to 273 bps. The 'BB' spread remained unchanged at 510 bps, 'B' tightened 2 bps to 685 bps, and 'CCC' tightened 3 bps to 1,083 bps.
Industry spreads tightened marginally across the board, with telecommunications tightening 2 bps to 334 bps and financial institutions, banks, industrials, and utilities tightening one basis point each to 378 bps, 307 bps, 353 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,
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Analyst Contact:
Diane Vazza, New York (1) 212-438-2760
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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Americas Customer Service: (1) 212-438-7280
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