Oct. 26, 2009 (Business Wire) -- As CDS spreads continue to tighten in the consumer goods sector, uncertainty reigns supreme among those entities that specialize in manufacturing auto parts as evidenced by rising liquidity, according to Fitch Solutions in its latest update on Global CDS Spreads/Liquidity Scores for companies scheduled to come out with earnings announcements in the coming week.
"While spread tightening among auto consumer good companies is an encouraging sign, rising liquidity highlights continued uncertainty on where the auto sector is headed as various government scrappage initiatives draw to a close," said Author and Managing Director Thomas Aubrey.
North America:
American Axle and Manufacturing, Inc. (CONSUMER GOODS/Automobiles & Parts)
Credit spreads have tightened over the last three months, with the five-year point tightening from 9142 basis points (bps) to 948 bps, a decrease of 90%. Liquidity on American Axle and Manufacturing, Inc. increased from trading in the 66th percentile to the 15th percentile. Its liquidity score increased from 10 to 7.81 over the three-month period.
BorgWarner Incorporated (CONSUMER GOODS/Automobiles & Parts)
Credit spreads have tightened over the last three months, with the five-year point tightening from 110 bps to 105 bps, a decrease of 5%. Liquidity on BorgWarner Incorporated decreased from trading in the 28th percentile to the 48th percentile. Its liquidity score decreased from 8.13 to 8.7 over the three-month period.
Brunswick Corporation (CONSUMER GOODS/Leisure Goods)
Credit spreads have tightened over the last three months, with the five-year point tightening from 1058 bps to 458 bps, a decrease of 57%. Liquidity on Brunswick Corporation decreased from trading in the 9th percentile to the 15th percentile. Its liquidity score decreased from 7.27 to 7.82 over the three-month period.
Colgate-Palmolive Company (CONSUMER GOODS/Personal Goods)
Credit spreads have tightened over the last three months, with the five-year point tightening from 39 bps to 31 bps, a decrease of 19%. Liquidity on Colgate-Palmolive Company decreased from trading in the 56th percentile to the 59th percentile. Its liquidity score increased from 9.33 to 9.07 over the three-month period.
Eastman Kodak Company (CONSUMER GOODS/Leisure Goods)
Credit spreads have tightened over the last three months, with the five-year point tightening from 1765 bps to 1002 bps, a decrease of 43%. Liquidity on Eastman Kodak Company increased from trading in the 25th percentile to the third percentile. Its liquidity score increased from 8.04 to 7.26 over the three-month period.
Goodyear Tire & Rubber Company (The) (CONSUMER GOODS/Automobiles & Parts)
Credit spreads have tightened over the last three months, with the five-year point tightening from 543 bps to 420 bps, a decrease of 23%. Liquidity on The Goodyear Tire & Rubber Company increased from trading in the 30th percentile to the 26th percentile. Its liquidity score increased from 8.22 to 8.17 over the three-month period.
Johnson Controls, Inc. (CONSUMER GOODS/Automobiles & Parts)
Credit spreads have tightened over the last three months, with the five-year point tightening from 237 bps to 144 bps, a decrease of 39%. Liquidity on Johnson Controls, Inc. decreased from trading in the 30th percentile to the 32nd percentile. Its liquidity score decreased from 8.2 to 8.31 over the three-month period.
Kellogg Company (CONSUMER GOODS/Food Producers)
Credit spreads have tightened over the last three months, with the five-year point tightening from 41 bps to 34 bps, a decrease of 17%. Liquidity on Kellogg Company decreased from trading in the 53rd percentile to the 67th percentile. Its liquidity score decreased from 9.17 to 9.37 over the three-month period.
Newell Rubbermaid, Inc. (CONSUMER GOODS/Household Goods)
Credit spreads have widened over the last three months, with the five-year point widening from 147 bps to 156 bps, an increase of 6%. Liquidity on Newell Rubbermaid, Inc. decreased from trading in the eighth percentile to the 19th percentile. Its liquidity score decreased from 7.25 to 7.94 over the three-month period.
Procter & Gamble Company (The) (CONSUMER GOODS/Household Goods)
Credit spreads have tightened over the last three months, with the five-year point tightening from 62 bps to 48 bps, a decrease of 23%. Liquidity on Procter & Gamble Company decreased from trading in the 28th percentile to the 43rd percentile.
