Credit Market Commentary: Market Derived Signal: The Cost To Purchase Protection On Computer Sciences Corp.?s CDS Soars To Record Nov 11

  • ID: 2025045
  • November 2011
  • Standard & Poors
1 of 3


  • Computer Sciences Corp.
  • MORE

The spread on Computer Sciences Corp.'s five-year credit default swap (CDS) widened to an all-time high for the week ended Nov. 14, as a variety of issues at the company converged to heighten the credit market's view of the company's risk of default. On Nov. 9, the company reported a fiscal second-quarter loss of $2.88 billion. In addition, the status of an important contract with the U.K. National Health Service (NHS) remains in limbo. Complicating matters is the fact that CEO Michael Laphen retired last month, creating uncertainty about company leadership until a successor is named. In addition, activist investors may pressure Computer Sciences to boost shareholder value. For example, Bill Ackman of Pershing Square Capital Management has reportedly reached...

Companies mentioned in this report are:
- Computer Sciences Corp.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

Note: Product cover images may vary from those shown
2 of 3

- Computer Sciences Corp.

Note: Product cover images may vary from those shown
3 of 3
Note: Product cover images may vary from those shown




Our Clients

  • Fluidigm Corporation
  • Apple, Inc.
  • CEVA Santé Animale
  • Abbott Laboratories Ltd.
  • Merck Group
  • Allergan Inc.
  • Pfizer Inc.