ThyssenKrupp downgrade prompts spread widening

S&P lowered its long-term corporate credit rating on German industrial conglomerate ThyssenKrupp to BB+ from BBB and its short-term rating to B from A-2. The agency said the downgrade was due to a rising pension funding gap. This afternoon, five-year credit default swaps on the name were trading off this morning's wides at around 340/380bp, about 100bp wider than at yesterday’s close.

Other European corporates on the S&P creditwatch list due to pension concerns include French steelmaker Arce

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