Bangkok--17 Dec--Standard & Poor's
Standard & Poor's investment-grade and speculative-grade composite spreads tightened yesterday to 207 basis points (bps) and 643 bps, respectively. By rating, the 'AA', 'A', and 'BBB' spreads tightened 2 bps each to 142 bps, 178 bps, and 262 bps, respectively. The 'BB' spread compressed 7 bps to 477 bps, 'B' tightened 11 bps to 643 bps, and 'CCC' compressed 8 bps to 1,032 bps.
By industry, financial institutions tightened 4 bps to 362 bps, industrials and telecommunications tightened 3 bps each to 333 bps and 315 bps, respectively, and banks and utilities tightened one basis point each to 287 bps and 211 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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