Fitch Solutions: Greece CDS Tighten 22%; Portugal Stumbles

NEW YORK--(BUSINESS WIRE)-- Link to Fitch Solutions' Report: Fitch Solutions' Risk and Performance Monitor
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=669069

Global credit default swap (CDS) spreads have rallied of late thanks most notably to Greece, according to Fitch Solutions in its latest Risk and Performance Monitor.

CDS on European sovereigns firmed 10% on average, last week, with Greece leading the spread tightening (22%). 'Market reaction to the debt restructuring talks indicates a possible near-term solution to Greece's troubles, which likely drove the spread tightening,' said Author and Director Diana Allmendinger. Other sovereigns whose spreads have outperformed of late include France (18%), Austria (15%) and Belgium (14%).

In contrast, Portugal is bucking the trend, with CDS widening 12% through yesterday. 'CDS on Portugal are now at their widest levels to date, signaling market concerns that the country may eventually require another bailout,' said Allmendinger.

Improved performance was also observed for financials in both Europe (11%) and North America (6%), with French and German banks in particular seeing the most credit strengthening.

Fitch Solutions' Risk and Performance Monitor is a report that gauges CDS market sentiment and spread movement among major companies and sovereigns throughout the world on a weekly basis. The Risk and Performance Monitor is part of Fitch Solutions' Risk and Performance Platform, which provides a single point of access for CDS pricing data, market indicators of credit quality from a suite of market implied ratings models, as well as portfolio monitoring features.

The 'Fitch Risk and Performance Monitor' is available by clicking on the above link.

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Fitch Solutions, a division of the Fitch Group, focuses on the development of fixed-income products and services, bringing to market a wide range of data, analytical tools and related services. The division is also the distribution channel for Fitch Ratings content.

The Fitch Group also includes Fitch Ratings and is a majority-owned subsidiary of Fimalac, S.A. For additional information, please visit 'www.fitchsolutions.com'; 'www.fitchratings.com'; and 'www.fimalac.com'.