The Standard & Poor's speculative-grade composite spread expanded 16 basis points (bps) yesterday to 549 bps, while the investment-grade spread expanded 2 bps to 173 bps. By rating, 'AA' spreads expanded one basis point to 123 bps. 'A' and 'BBB' spreads each expanded 2 bps to 153 bps and 204 bps, respectively. 'BB' spreads expanded 13 bps to 399 bps, 'B' spreads expanded 17 bps to 582 bps, and 'CCC' spreads expanded 20 bps to 834 bps. Industry spreads widened across the board as well, by an average of 4 bps, leaving financial institutions at 267 bps, banks at 229 bps, industrials at 268 bps, utilities at 177 bps, and telecommunications at 289 bps. Spreads began 2011 by tightening through...
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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.