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Dec 20 (Reuters) - (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.
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