High-grade primary market quiet; Anheuser-Busch eases; AT&T widens; Time Warner softens

By Cristal Cody

Eureka Springs, Ark., May 6 – Investment-grade primary action took a break on Friday after more than $27 billion of bonds priced over the week.

Anheuser-Busch InBev Finance Inc.’s 3.65% notes due 2026 eased 1 basis point to 127 bps on the day after the company’s ratings were downgraded by Fitch Ratings. Fitch dropped the company to BBB+ from A. The ratings remain on Rating Watch negative pending Anheuser-Busch’s closing of its acquisition of SABMiller plc.

The company sold $11 billion of the notes (A2/A-/BBB+) on Jan. 13 at a spread of Treasuries plus 160 bps.

AT&T Inc.’s 4.125% notes due 2026 traded 2 bps weaker on Friday at 156 bps bid, a market source said.

AT&T sold $900 million in a tap of the issue on Tuesday at a spread of Treasuries plus 150 bps.

AT&T’s 4.8% notes due 2044 widened 4 bps to 218 bps bid in the secondary market.

The company sold $500 million of the notes in an add-on on Tuesday at 210 bps over Treasuries.

Time Warner Inc.’s 2.95% notes due 2026 traded 2 bps softer than issuance in secondary trading at 137 bps offered early on Friday, according to a market source.

Time Warner sold $800 million of the notes (Baa2//BBB+) on Thursday at a spread of Treasuries plus 135 bps.

The Markit CDX North American Investment Grade series 23 index ended mostly unchanged at a spread of 85 bps.

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