(The following statement was released by the rating agency)
NEW YORK, September 12 (Fitch) The credit default swap (CDS)
market seems to be
reacting favorably to Microsoft's plans to acquire Nokia Oyj,
according to the
latest case study from Fitch Solutions.
Following the $7.2 billion acquisition on announcement on
Sept.3, CDS spreads on
Nokia have tightened 59%, while Microsoft remains largely
Additionally, the cost of credit protection on Nokia's debt is
now at 'BB+'
That said, CDS liquidity for Nokia remains high. Trading in the
percentile, 'Nokia is trading with more CDS liquidity than 97
percent of Fitch's
CDS pricing universe, signaling still-high market uncertainty
pricing,' said Director Diana Allmendinger.
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
short term market
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.
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