Fitch Solutions: Anheuser-Busch InBev CDS Widen to Three-Year Highs

NEW YORK--()--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.

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.

Contacts

Fitch Solutions
Diana Allmendinger
Director
+1 212-908-0848
Fitch Solutions, 33 Whitehall Street, New York, NY 10004
or
Media Relations:
Athos Larkou, +44 203 530 1549, London
athos.larkou@fitchratings.com
Sandro Scenga, +1 212-908-0278, New York
sandro.scenga@fitchratings.com

Contacts

Fitch Solutions
Diana Allmendinger
Director
+1 212-908-0848
Fitch Solutions, 33 Whitehall Street, New York, NY 10004
or
Media Relations:
Athos Larkou, +44 203 530 1549, London
athos.larkou@fitchratings.com
Sandro Scenga, +1 212-908-0278, New York
sandro.scenga@fitchratings.com