Poor auto sales and Fiat downgrade drives some spreads wider

Fitch’s downgrade of Fiat to BB+/negative on Tuesday was swiftly followed by S&P on Wednesday. Immediately following the Fitch downgrade, five-year credit default protection for Fiat widened by 75bp to 800/850bp, widening another 25bp on S&P’s downgrade. Fiat's spreads continued to widen throughout the week due to investors' concerns over the company's capital position. Its credit default spreads closed today at 850/950bp. Traders said there were also concerns about the exposures of Italian