OREANDA-NEWS. Recent shakeups around Toshiba Corporation have driven out credit default swap (CDS) spreads to their widest level in three years, according to Fitch Solutions in its latest CDS case study snapshot.

Five-year CDS on Toshiba widened out 45% over the past week to price at the widest levels since 2012. The cost of credit protection on Toshiba has also risen significantly in the last six months and is now pricing firmly in non-investment grade territory.

"Souring market sentiment for Toshiba is likely being driven by concerns surrounding management shake-ups, accounting scandals and disappointing earnings," 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.