(Repeat for additional subscribers)
Dec 20 (The following statement was released by the rating agency)
Credit default swap (CDS) spreads on Panasonic
Corporation have firmed 32% over the past month, according to the latest case
study from Fitch Solutions.
Another sign of growing market confidence for Panasonic is the year-over-year
tightening with CDS spreads 77% tighter compared to 2012. 'The cost of credit
protection on Panasonic's debt is now testing the lowest levels observed since
August 2011,' said Director Diana Allmendinger
Panasonic's five-year probability of default is also signaling improved market
sentiment, falling to 2.1% from 15.3% a year ago. 'Improved sentiment is likely
attributed to Panasonic's continued restructuring along with efforts to improve
profitability,' said 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.
Additional information about Fitch Solutions' products is available in the link