Fitch Solutions: Liquidity Up Among Auto Consumer Goods as CDS Tightens

NEW YORK & LONDON--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. Its liquidity score decreased from 8.14 to 8.61 over the three-month period.

Standard Pacific Corporation (CONSUMER GOODS/Household Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 741 bps to 606 bps, a decrease of 18%. Liquidity on Standard Pacific Corporation decreased from trading in the 3rd percentile to the 53rd percentile. Its liquidity score decreased from 6.86 to 8.82 over the three-month period.

Europe:

British American Tobacco PLC (CONSUMER GOODS/Tobacco)

Credit spreads have tightened over the last three months, with the five-year point tightening from 62 bps to 55 bps, a decrease of 10%. Liquidity on British American Tobacco PLC increased from trading in the 40th percentile to the 29th percentile. Its liquidity score increased from 8.92 to 8.43 over the three-month period.

Mohawk Industries, Inc. (CONSUMER GOODS/Household Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 316 bps to 201 bps, a decrease of 36%. Liquidity on Mohawk Industries, Inc. decreased from trading in the 22nd percentile to the 39th percentile. Its liquidity score decreased from 7.94 to 8.51 over the three-month period.

Asia:

Aisin Seiki Co., Ltd. (CONSUMER GOODS/Automobiles & Parts)

Credit spreads have tightened over the last three months, with the five-year point tightening from 87 bps to 66 bps, a decrease of 24%. Liquidity on Aisin Seiki Co., Ltd. increased from trading in the 39th percentile to the 23rd percentile. Its liquidity score increased from 10.64 to 10.12 over the three-month period.

Asahi Breweries Ltd (CONSUMER GOODS/Beverages)

Credit spreads have tightened over the last three months, with the five-year point tightening from 63 bps to 44 bps, a decrease of 31%. Liquidity on Asahi Breweries Ltd increased from trading in the 43rd percentile to the 35th percentile. Its liquidity score increased from 10.88 to 10.78 over the three-month period.

DENSO Corporation (CONSUMER GOODS/Automobiles & Parts)

Credit spreads have tightened over the last three months, with the five-year point tightening from 64 bps to 55 bps, a decrease of 14%. Liquidity on DENSO Corporation increased from trading in the 70th percentile to the 57th percentile. Its liquidity score increased from 12.51 to 11.99 over the three-month period.

Honda Motor Co., Ltd. (CONSUMER GOODS/Automobiles & Parts)

Credit spreads have tightened over the last three months, with the five-year point tightening from 70 bps to 64 bps, a decrease of 8%. Liquidity on Honda Motor Co., Ltd. decreased from trading in the 10th percentile to the 17th percentile. Its liquidity score decreased from 8.8 to 9.58 over the three-month period.

Japan Tobacco Inc. (CONSUMER GOODS/Tobacco)

Credit spreads have tightened over the last three months, with the five-year point tightening from 42 bps to 38 bps, a decrease of 9%. Liquidity on Japan Tobacco Inc. decreased from trading in the 22th percentile to the 25th percentile. Its liquidity score decreased from 9.83 to 10.22 over the three-month period.

Konica Minolta Holdings, Inc. (CONSUMER GOODS/Leisure Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 52 bps to 48 bps, a decrease of 7%. Liquidity on Konica Minolta Holdings, Inc. decreased from trading in the 55th percentile to the 57th percentile. Its liquidity score decreased from 11.5 to 12.01 over the three-month period.

Makita Corporation (CONSUMER GOODS/Household Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 93 bps to 80 bps, a decrease of 14%. Liquidity on Makita Corporation increased from trading in the 96th percentile to the 80th percentile. Its liquidity score increased from 16.64 to 13.59 over the three-month period.

Kao Corporation (CONSUMER GOODS/Personal Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 37 bps to 24 bps, a decrease of 35%. Liquidity on Kao Corporation increased from trading in the 76th percentile to the 58th percentile. Its liquidity score increased from 12.99 to 12.05 over the three-month period.

Kikkoman Corporation (CONSUMER GOODS/Food Producers)

Credit spreads have tightened over the last three months, with the five-year point tightening from 52 bps to 38 bps, a decrease of 27%. Liquidity on Kikkoman Corporation increased from trading in the 74th percentile to the 73rd percentile. Its liquidity score decreased from 12.73 to 13.01 over the three-month period.

Mitsubishi Motors Corporation (CONSUMER GOODS/Automobiles & Parts)

Credit spreads have widened over the last three months, with the five-year point widening from 654 bps to 699 bps, an increase of 7%. Liquidity on Mitsubishi Motors Corporation decreased from trading in the 89th percentile to the 96th percentile. Its liquidity score decreased from 14.53 to 17.2 over the three-month period.

Mazda Motor Corporation (CONSUMER GOODS/Automobiles & Parts)

Credit spreads have tightened over the last three months, with the five-year point tightening from 303 bps to 200 bps, a decrease of 34%. Liquidity on Mazda Motor Corporation decreased from trading in the 14th percentile to the 29th percentile. Its liquidity score decreased from 9.28 to 10.41 over the three-month period.

Panasonic Corporation (CONSUMER GOODS/Leisure Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 49 bps to 35 bps, a decrease of 29%. Liquidity on Panasonic Corporation decreased from trading in the 30th percentile to the 39th percentile. Its liquidity score decreased from 10.21 to 11.01 over the three-month period.

Sanyo Electric Co., Ltd. (CONSUMER GOODS/Leisure Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 97 bps to 74 bps, a decrease of 24%. Liquidity on Sanyo Electric Co., Ltd. decreased from trading in the 14th percentile to the 18th percentile. Its liquidity score decreased from 9.27 to 9.76 over the three-month period.

Sapporo Holdings Limited (CONSUMER GOODS/Beverages)

Credit spreads have tightened over the last three months, with the five-year point tightening from 144 bps to 122 bps, a decrease of 15%. Liquidity on Sapporo Holdings Limited decreased from trading in the 33rd percentile to the 47th percentile. Its liquidity score decreased from 10.35 to 11.45 over the three-month period.

Sekisui Chemical Co., Ltd. (CONSUMER GOODS/Household Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 83 bps to 71 bps, a decrease of -15%. Liquidity on Sekisui Chemical Co., Ltd. decreased from trading in the 61st percentile to the 73rd percentile. Its liquidity score decreased from 11.85 to 13.02 over the three-month period.

Sharp Corporation (CONSUMER GOODS/Leisure Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 73 bps to 49 bps, a decrease of 32%. Liquidity on Sharp Corporation decreased from trading in the 26th percentile to the 30th percentile. Its liquidity score decreased from 10 to 10.48 over the three-month period.

Sony Corporation (CONSUMER GOODS/Leisure Goods)

Credit spreads have tightened over the last three months, with the five-year point tightening from 82 bps to 56 bps, a decrease of 31%. Liquidity on Sony Corporation decreased from trading in the 19th percentile to the 20th percentile. Its liquidity score decreased from 9.55 to 9.95 over the three-month period.

Toyota Industries Corporation (CONSUMER GOODS/Automobiles & Parts)

Credit spreads have tightened over the last three months, with the five-year point tightening from 69 bps to 66 bps, a decrease of -4%. Liquidity on Toyota Industries Corporation increased from trading in the 50th percentile to the 41st percentile. Its liquidity score increased from 11.31 to 11.13 over the three-month period.

The Yokohama Rubber Co., Ltd. (CONSUMER GOODS/Automobiles & Parts)

Credit spreads have widened over the last three months, with the five-year point widening from 70 bps to 88 bps, an increase of 25%. Liquidity on The Yokohama Rubber Co., Ltd. increased from trading in the 95th percentile to the 63rd percentile. Its liquidity score increased from 16.29 to 12.35 over the three-month period.

Fitch Solutions, a division of the Fitch Group, focuses on the development of fixed-income products and services, bringing to market a wide range of data, analytical tools and related services. The division is also the distribution channel for Fitch Ratings content.

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