×

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.

CONTEXT:

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)

((patturaja.murugaboopathy@thomsonreuters.com))

Keywords: MIDCAP JGSUMMIT/