NEW YORK--(BUSINESS WIRE)--Sharply declining oil prices are weighing on credit default swap spreads (CDS) for Parker Drilling Company, according to Fitch Solutions in its latest CDS Case Study Snapshot.
Five-year CDS on Parker Drilling have widened 40% over the past month to price at the widest levels observed in over three years. After pricing consistently in-line with 'B' levels, credit protection on Parker Drilling debt is now pricing in 'CCC' space.
"Waning market sentiment for Parker Drilling is likely attributed to concerns over the impact of declining oil prices on the company's credit prospects," said Director Diana Allmendinger.
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