Fitch Solutions: Genworth CDS Widens to Three-Year High
Five-year CDS spreads on Genworth widened out 18% last week and 55% over the past month. After trading at 'B+' levels consistently over the past six months, the cost of credit protection on Genworth's debt it now pricing in line with 'B-' levels.
'Soured market sentiment for Genworth can likely be partially attributed to uncertainty stemming from changes at high levels of management, including Genworth CFO's resignation,' said Director Diana Allmendinger.
Fitch Solutions case studies build on data from its CDS Pricing Service and proprietary quantitative models, including CDS Implied Ratings. These credit risk indicators are designed to provide real-time, market-based views of creditworthiness. As such, they can and often do reflect more short term market views on factors such as currencies, seasonal market effects and short-term technical influences. This is in contrast to Fitch Ratings' Issuer Default Ratings (IDRs), which are based on forward-looking fundamental credit analysis over an extended period of time.
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