NEW YORK--(BUSINESS WIRE)--Anheuser-Busch InBev's ongoing pursuit of British-South African beer brewer SABMiller is weighing on the company's credit default swap (CDS) spreads, according to Fitch Solutions in its latest CDS Case Study snapshot.
Five-year CDS on Anheuser-Busch InBev have widened out 25% over the past month to price at the widest levels observed in three years. After pricing consistently in line with 'A/A-' levels throughout the past year, credit protection for the beer maker is now pricing in 'BBB+/BBB' territory.
'The CDS market appears to be concerned over Anheuser-Busch InBev's continued efforts to acquire competitor SABMiller with its latest bid of over $100 billion, which is likely contributing to the spread widening,' 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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