Fitch Solutions: Genworth CDS Widens to Three-Year High

NEW YORK--(BUSINESS WIRE)-- Management changes are sending credit default swap (CDS) spreads on Genworth Holdings, Inc. to their widest level since 2012, according to Fitch Solutions in its latest CDS Case Study Snapshot.

Five-year CDS spreads on Genworth widened out 18% last week and 55% over the past month. After trading at 'B+' levels consistently over the past six months, the cost of credit protection on Genworth's debt it now pricing in line with 'B-' levels.

'Soured market sentiment for Genworth can likely be partially attributed to uncertainty stemming from changes at high levels of management, including Genworth CFO's resignation,' 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.

Fitch Group is a global leader in financial information services with operations in more than 30 countries. Fitch Group is comprised of: Fitch Ratings, a global leader in credit ratings and research; Fitch Solutions, a leading provider of credit market data, analytical tools and risk services; BMI Research, an independent provider of country risk and industry analysis specializing in emerging and frontier markets; and Fitch Learning, a preeminent training and professional development firm. With dual headquarters in London and New York, Fitch Group is majority owned by Hearst.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151019006626/en/

Fitch Solutions
Diana Allmendinger, +1 212-908-0848
Director
Fitch Solutions
33 Whitehall Street
New York, NY 10004
or
Media Relations
Sandro Scenga, New York, +1 212-908-0278
[email protected]

Source: Fitch Solutions

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