MIDCAP-Philippine JG Summit CDS spreads widen sharply

The spreads on credit default swaps (CDS) of JG Summit Holdings widened the most in a month among 15 actively traded CDS in the country, data from Thomson Reuters Credit Views showed.

A widening CDS spread indicates a drop in credit worthiness of a company and growing investor scepticism over its ability to service debt.

JG Summit's 5-year CDS spread stood at 219.334 on Monday, having deteriorated 13.3 percent in a month.

The stock is down 4.6 percent over the past month, while the broader index is up 2.2 percent in the same period.


On Sept. 26, JG Summit announced that Express Holdings Inc, its subsidiary, sold 100 million JG shares for 3.2 billion pesos via an accelerated equity placement at a price of 32 pesos per share. The shares have fallen more than 7 percent since the announcement. For the filing:

(Reporting by Patturaja Murugaboopathy; Editing by Sunil Nair)