Fitch Solutions: Xerox CDS Reach Widest Level in Four Years

NEW YORK--(BUSINESS WIRE)-- The cost of credit protection for Xerox Corporation continues to rise as steadily widening credit default swap (CDS) spreads will attest, according to Fitch Solutions in its latest CDS Case Study Snapshot.

Five-year CDS spreads on Xerox widened 31% over the past week and are 244% wider compared to levels seen at this time one year ago. Credit protection on Xerox's debt is now pricing in 'BB' territory, the highest levels observed since late 2012.

'Waning market sentiment revolves around Xerox's plans to separate into two publicly traded companies, which will place added pressure on the company's Document Technologies business by increasing borrowing costs for its customer financing business,' 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/20160204005867/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

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