Credit Spread Calculation for ABC Corp. Bonds

ABC Corp. is a mid-sized company that recently issued 5-year senior unsecured bonds rated BB by major credit rating agencies. Analysts are concerned about the company’s ability to meet its debt obligations due to increasing competition and operational inefficiencies. The risk-free rate is currently 3%, and the market's expected default probability for BB-rated bonds is estimated at 0.07. The loss given default (LGD) is assumed to be 50%. Using a reduced form model, you are tasked with evaluating the bond's credit spread.

What would be the expected credit spread for ABC Corp.'s bonds based on the above assumptions?