Bangkok--8 Dec--Standard & Poor's
Standard & Poor's investment-grade and speculative-grade composite spreads tightened on Friday to 216 basis points (bps) and 671 bps, respectively. By rating, the 'AA' spread tightened 3 bps to 147 bps; 'A' and 'BBB' tightened 2 bps each to 185 bps and 272 bps, respectively; 'BB' tightened 13 bps to 498 bps; 'B' tightened 15 bps to 669 bps; and 'CCC' tightened 19 bps to 1,058 bps.
By industry, industrials and telecommunications tightened by the largest margin of 6 bps each, to 346 bps and 331 bps, respectively, followed by financial institutions and banks, which tightened 4 bps each to 373 bps and 305 bps, respectively. Utilities tightened by the smallest margin of one basis point to 216 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,
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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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