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Reuters Corporate Spreads for Utilities*
| Rating |
1 yr |
2 yr |
3 yr |
5 yr |
7 yr |
10 yr |
30 yr |
| Aaa/AAA |
8 |
11 |
13 |
20 |
26 |
28 |
37 |
| Aa1/AA+ |
9 |
12 |
14 |
21 |
29 |
30 |
47 |
| Aa2/AA |
11 |
15 |
16 |
24 |
32 |
38 |
57 |
| Aa3/AA- |
11 |
19 |
21 |
28 |
39 |
50 |
67 |
| A1/A+ |
16 |
22 |
24 |
38 |
47 |
67 |
68 |
| A2/A |
19 |
25 |
25 |
44 |
51 |
69 |
79 |
| A3/A- |
24 |
32 |
37 |
50 |
64 |
72 |
97 |
| Baa1/BBB+ |
36 |
49 |
56 |
73 |
79 |
87 |
107 |
| Baa2/BBB |
51 |
60 |
70 |
80 |
90 |
112 |
127 |
| Baa3/BBB- |
56 |
78 |
80 |
90 |
101 |
128 |
132 |
| Ba1/BB+ |
240 |
312 |
295 |
227 |
170 |
200 |
159 |
| Ba2/BB |
250 |
275 |
300 |
230 |
130 |
145 |
192 |
| Ba3/BB- |
230 |
255 |
275 |
250 |
145 |
190 |
245 |
| B1/B+ |
310 |
350 |
455 |
360 |
245 |
300 |
225 |
| B2/B |
415 |
440 |
505 |
410 |
245 |
370 |
350 |
| B3/B- |
490 |
520 |
610 |
510 |
380 |
445 |
520 |
| Caa/CCC |
580 |
650 |
755 |
710 |
495 |
520 |
620 | Methodology Reuters Pricing Service (RPS) has eight experienced evaluators responsible for pricing approximately 20,000 investment grade corporate bonds. Corporate bonds are segregated into four industry sectors; industrial, financial, transports and utilities. RPS prices corporate bonds at a spread above an underlying treasury issue. The evaluators obtain the spreads from brokers and traders at various firms. A generic spread for each sector is created using input from street contacts and the evaluator's expertise. A matrix is then developed based on sector,rating, and maturity.
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