S&P: Distressed Level Hits 17-Month Low
November 20, 2009
Distressed debt has hit its lowest levels in 17 months, according to a report issued today by Standard & Poor’s. The drop in the distressed rate coincides with spreads remaining steady.
The distressed ratio stood at 17% as of Nov. 16, down from 18.7% in October. And the amount of debt held by distressed companies fell to $81.2 billion from $89.4 billion in October.
S&P's speculative-grade corporate bond spread was at 705 bps on Nov. 16, down from 708 bps the previous month. Among distressed issues, the number trading at spreads of 1,000 bps or higher is down to 140 from 151 in October.
The distressed levels among leveraged loans decreased to 22% in October from 25.6% in September.
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