December 17, 2015 / 3:26 PM / 2 years ago

Fitch Solutions: Neiman Marcus CDS Widen 45%

(The following statement was released by the rating agency) NEW YORK, December 17 (Fitch) Recent technical and financial issues have widened credit default swap (CDS) spreads on Neiman Marcus Group LLC to levels not seen since 2013, according to Fitch Solutions in its latest CDS case study snapshot. Five-year CDS on Neiman Marcus widened 45% over the past week and are 92% wider since the start of December. Credit protection on Neiman Marcus' debt is now pricing deeper in speculative grade ('BB-') territory. 'Souring market sentiment for Neiman Marcus is likely attributed to declining sales exacerbated by a technical hiccup over the Thanksgiving shopping weekend,' said Director Diana Allmendinger. 'Disappointing quarterly results released this past Monday appear to have added to market concerns over Neiman's credit prospects.' 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. Contact: Diana Allmendinger Director +1 212-908-0848 Fitch Solutions, 33 Whitehall Street, New York, NY 10004 Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com. 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.

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