And Then There Were 3…

Last week, fitting with the fallout in the market for subprime mortgages, triple-A rated corporate bonds saw its ranks thinned even more as the ratings of Nestle were cut to AA+. Nestle, the last European company with triple-A ratings, had their ratings cut after announcing its biggest-ever equity share buyback. Credit-default swaps on Nestle are currently priced at 10.5 basis points, triple the 3 basis points reported in June. With this news, Exxon-Mobil, Johnson & Johnson and Toyota Motor Corp. are the only remaining members of the group of triple-A rated corporates.