Bangkok--3 Dec--Standard & Poor's
Standard & Poor's investment-grade composite spread remained unchanged yesterday at 223 basis points (bps), while its speculative-grade counterpart tightened 5 bps to 704 bps. By rating, the 'AA', 'A', and 'BBB' spreads remained unchanged at 153 bps, 191 bps, and 278 bps, respectively. The 'BB' spread tightened 3 bps to 524 bps, 'B' tightened 5 bps to 700 bps, and 'CCC' tightened one basis point to 1,101 bps.
Industry spreads were largely unchanged, with financial institutions, banks, industrials, and telecommunications remaining at Monday's levels of 381 bps, 315 bps, 358 bps, and 343 bps, respectively. Utilities expanded one basis point to 220 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:
Mimi Barker, New York (1) 212-438-5054,
[email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760