Fitch Solutions: Kinder Morgan CDS at Widest Level Since 2008

NEW YORK--(BUSINESS WIRE)-- Widening credit default swap (CDS) spreads for Kinder Morgan Energy Partners LP are indicating much pricier credit protection for the oil & gas company, according to Fitch Solutions in its latest CDS case study snapshot.

Five-year CDS on Kinder Morgan widened out 28% over the past week and nearly 400% since the start of 2015. Kinder Morgan's CDS are now at their widest level in seven years. After pricing consistently at 'BBB/BBB-' levels for much of the past year, credit protection on Kinder Morgan's debt is now pricing in 'B+' territory.

'Market scrutiny is attributed to Kinder Morgan's heavy debt burden, constricted capital market access, and concerns over profitability amid continued weakness in the oil and gas industry,' said Director Diana Allmendinger. 'Time will tell if market sentiment changes for Kinder Morgan following their announcement earlier this week of a 30% acquisition in Natural Gas Pipeline Company of America.'

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/20151203006099/en/

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

Source: Fitch Solutions

You May Also Be Interested In

• Speakeasy Dispensary Opens New Ward Location, Expanding Patient Access in Central Arkansas
• Mesa Power Solutions Invests $70 Million in New Wyoming Manufacturing Facility
• Precipio Announces Q2-2026 Financial Results