NEW YORK--(BUSINESS WIRE)--Credit default swap (CDS) spreads for Eastman Chemical Company have moved out to their widest levels in four years, according to Fitch Solutions in its latest CDS Case Study Snapshot.
Five-year CDS on Eastman Chemical widened out 49% over the past week, notably underperforming the broader North America Chemicals sector (14% wider). After pricing consistently in line with 'BBB' levels over the past year, credit protection for Eastman Chemical is now in 'BBB-' territory.
'While weaker economic numbers certainly seem to be a catalyst, the drop in petrochemical prices seems to be hitting spreads on Eastman Chemical harder than its peers,' 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.
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