(The following statement was released by the rating agency)
NEW YORK, January 28 (Fitch) CDS market sentiment towards French
company Alstom has worsened in the last week after the company
cut its profit
forecast due to lacklustre demand for power equipment, according
to the latest
case study from Fitch Solutions.
â€œCredit default swaps on Alstom widened out 35% last week,
underperforming our European Industrials CDS Index, which moved
6% wider,â€� said
Diana Allmendinger, Director, Fitch Solutions.
CDS market sentiment for Alstom may have been further impacted
by recent news
reports of an investigation into its Brazilian operations,
alleging that Alstom
paid bribes to gain public contracts in the late 1990â€™s and
After pricing consistently in line with â€˜BBBâ€™ spread levels,
Alstomâ€™s debt are now testing below investment grade levels.
CDS liquidity for Alstom increased slightly last week, moving up
to trade in the 23rd global percentile. Increased CDS liquidity
signals increased market uncertainty over future CDS pricing for
Meanwhile, Fitch Solutionsâ€™ five-year probability of default
for Alstom grew
112% last week from 5.05% to 10.7% as equity markets echoed the
Fitch Solutions case studies build on data from its CDS Pricing
proprietary quantitative models, including CDS Implied Ratings.
risk indicators are designed to provide real-time, market-based
creditworthiness. As such, they can and often do reflect more
views on factors such as currencies, seasonal market effects and
technical influences. This is in contrast to Fitch Ratings'
Ratings (IDRs), which are based on forward-looking fundamental
over an extended period of time.
Additional information about Fitch Solutions' products is
33 Whitehall Street
New York, NY 10004
Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530
firstname.lastname@example.org; Sandro Scenga, New York,
212-908-0278, Email: email@example.com.
Fitch Solutions, a division of the Fitch Group, focuses on the
fixed-income products and services, bringing to market a wide
range of data,
analytical tools and related services. The division is also the
channel for Fitch Ratings content.
Fitch Ratings and Fitch Solutions are part of the Fitch Group, a
subsidiary of Fimalac, S.A. and Hearst Corporation. For
please visit 'www.fitchsolutions.com'; 'www.fitchratings.com';