Credit default swaps immediately widened by 150bp on Wednesday to 420bp-mid. Yesterday protection costs were as wide as 485bp, as rating agency Standard & Poor's cut C&W’s debt ratings to BBB+ and warned that further downgrades may happen. Credit protection for C&W today was trading at 360bp. Meanwhile, debt protection for other European telcos narrowed following Deutsche Telekom’s unexpectedly strong moves to reduce its debt burden. Deutsche Telekom reported a net third-quarter loss of $20.
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