Fitch Solutions: Nordstrom CDS Widen 75% Over Last Week

NEW YORK--(BUSINESS WIRE)-- Subpar performance of late has driven credit default swap (CDS) spreads on Nordstrom, Inc. out to their widest levels since 2012, according to Fitch Solutions in its latest CDS case study snapshot.

Five-year CDS on Nordstrom widened out 75% over the past week, underperforming the broader North America Retail sector, the CDS of which widened by 10%. CDS credit protection on Nordstrom has also increased, moving from the 'A/A-' space for much of this year and now pricing in 'BBB' territory.

'Nordstrom's plunge in market sentiment is likely attributed to weaker than expected earnings and lowered outlook for the year,' 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 Solutions, 33 Whitehall Street, New York, NY 10004

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/20151116006469/en/

Fitch Solutions
Diana Allmendinger
Director
+1 212-908-0848
or
Media Relations:
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Solutions

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