Bangkok--4 Jan--Standard & Poor's
Standard & Poor's investment-grade and speculative-grade composite spreads remained unchanged yesterday at 191 basis points (bps) and 611 bps, respectively. By rating, the 'AA', 'A', and 'BBB' spreads tightened one basis point each to 128 bps,163 bps and 239 bps, respectively; 'BB' and 'B' expanded one basis point each to 447 bps and 608 bps, respectively; and 'CCC' remained unchanged at 982 bps.
Bank spreads tightened 3 bps to 276 bps, and financial institutions, industrials, utilities, and telecommunications tightened one basis point each to 323 bps, 312 bps, 192 bps, and 282 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:
Ana Sandoval, New York (1) 212-438-5095,
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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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